Gold price could hit $1,300 in 2011

The price of gold could reach $1,300-a-troy ounce by next year, research published yesterday suggested, as the commodity hit an all-time high spot price of $1,267.2 yesterday.

The metals consultancy GFMS said that worries about the strength of the economic recovery and renewed concerns about a sovereign debt crisis was likely to push up the price of gold, as investors look for a safe haven.

Yesterday's highs mark a 15 per cent hike in the gold price since the start of the year, even as the increase had been checked in recent months after crises in places such as Greece appeared not to spread.

December gold futures followed the spot price, rising to an all-time high of $1,268.