10 May 2010

Further rise in gold price tipped

10:16 pm on 10 May 2010

A bullion trader says the price for gold could reach last year's record high this week, as nervousness about European sovereign debt lingers.

The price of gold broke $US1200 per ounce late last week, as global stockmarkets plunged. It climbed even higher over the weekend.

Head bullion dealer NZ Mint, Mike O'Kane, says the price of gold could reach last year's record high of $US1227 US as early as this week, as fears of debt contagion in the eurozone push investors towards safe haven investments.

He says there has been increased interest in gold in New Zealand and a large increase in people from Europe and US markets buying it here.

Mike O'Kane says gold is currently in the first quarter of a bull run, which normally lasts for 20 to 25 years. However, he says the price is likely to fluctuate in the short term.