Barclays Capital Analysts See Gold Price Reaching $1,000 Again this Year

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Barclays' metal analysts, speaking at a press briefing yesterday, said the current market turmoil is likely to lead to short-covering in base metals while long-term investors head for gold which is perceived a relatively safe asset.

Gold prices could exceed $1,000 an ounce within the next few months as investors exit other commodities on heightened fears over a global economic downturn, said Barclays Capital.

Barclays' metal analysts, speaking at a press briefing yesterday, said the current market turmoil is likely to lead to short-covering in base metals while long-term investors head for gold which is perceived a relatively safe asset.

"In current volatility, I certainly wouldn't rule out $1000 with investors turning more positive toward gold," said Suki Cooper, a commodity analyst at Barclays Capital.

Earlier on Thursday, spot gold hit an intra-day high of $908.90 an ounce -- near a 1-week high of $920 touched on Wednesday well below a record high of $1,030.80 hit in March as the dollar fell and financial worries deepened.

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