Gold's near vertical climb towards a glittering $1,000-an-ounce continued today with analysts still of the opinion it is a matter of when and not if, it reaches the magical mark.
At close last night in London gold stood at $976.50-an-ounce and the increase shows little sign of abating as bullish forces such as a sinking dollar and record high oil price continue to cloud markets.
Fears that expensive oil will stoke inflation combined with worries over potential stock market losses and the US on the brink of possible economic recession will propel gold higher still, the analysts have said.
"Don't be surprised to see gold trade up to $1,100 (an ounce) or even $1,200 before year-end 2008," said Jeffrey Nichols, managing director of American Precious Metals Advisors.
"And, with the right confluence of economic and geopolitical developments, we could see gold spike to $1,500 or even $2,000 in the next few years," he said.
Gold hit a record high of $991.90 an ounce on Thursday and has jumped 20 per cent this year - 56 per cent in the past 12 months alone.
It is a far cry from the record low of August 1999 when it languished around the $250-an-ounce level.
It was previously fixed at a record high of $850 in January 1980 as high inflation linked to strong oil, Soviet intervention in Afghanistan and the impact of the Iranian revolution prompted investors to buy heavily. After adjusting for inflation, the 1980 high was $2,119.30 at 2007 prices.