Gold Price Hits New Historical High

• Analysts see gold at 1,200 USD/ounce by the end of the year • Hong Kong Mercantile Exchange introduces gold futures

Gold has reached yet another historical high on London and New York markets as the dollar continues to decline. Spot gold prices gained 11.53 USD (1 per cent) to a record 1,117.33 USD/once in London, then lost a little to 1,116.13 USD/ounce. December delivery prices gained 1.4 per cent on the Comex platform of the New York Mercantile Exchange to a record 1,117.80 USD/ounce and then inched down to 1,116.40 USD/ounce.

Analysts believe that the gold market is stimulated by both the decline of the U.S. currency and major gold purchases made by central banks lately.

The Central Bank of India last month bought 200 metric tonnes of gold from the International Monetary Fund for 6.7 billion USD. The deal prompted the analysts of Bank of America Merrill Lynch, Societe Generale SA and Barclays Capital to anticipate that central banks (the world"s largest gold owners) will continue to make such purchases.

Some analysts even believe that the price of gold will reach 1,200 USD/ounce by the end of the year.

Trying to capitalise on the current trend on the gold market, the Hong Kong Mercantile Exchange has announced intent to introduce gold futures as of January 2010. Such contracts will be denominated in dollars.

"We foresee Hong Kong establishing benchmark pricing of gold in the Asian time zone," Chairman Barry Cheung said. "Priorities changed from an initial plan to begin business with a fuel-oil contract amid a shift in customer interest," Cheung said.

Analysts are confident that Asian markets will continue to follow gold price dynamics on international markets as speculations and investments on this segment are massive.