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The gold price is predicted to reach USD1.300 per ounce this year as investors sought refuge from the gloomy economy, the weak value of the currency and inflation, according to GFMS Ltd..

“Looks like there will be a surge in investment demand at the end of this year, triggering price [of gold] to the level of USD1.300, maybe more. The prices will soar,” said CEO Paul Walker, as quoted from Bloomberg, Sunday (08/29/2010 ).

Gold demand rose 36 percent in the second quarter is suspected because of soaring gold purchases by investors as a patron that encourages the achievement of record prices amid debt crisis of Europe, said the World Gold Council’s August 25. Investors bought 291.3 tons of metal as a mutual fund.

Goldman Sachs Group Inc. earlier this month predicted prices may reach USD1.300 in six months. Deutsche Bank AG on June 3 predict metal prices rose to USD1.700 because the drop in currency values.

Gold for immediate delivery rose 0.3 percent to USD1.244, 30 in London yesterday, the highest since June 30. Metals traded USD1.235, 25 at 8:49 Tokyo time. World gold demand surged 1050.3 tons in the second quarter from 769.6 tons last year.

Just to remind, after increasing for two consecutive days, gold prices back down. This is due to unemployment data which was considered negative.

“U.S. jobless claims fell more than expected, pushing demand for the precious metal as a safe-haven investment,” he wrote in his research Valbury Securities. The spot gold traded at USD1.238 per-ounce level on Thursday morning local time, from USD1.239 position a day earlier.

While the USD fell against both the euro and yen on Thursday as Federal Chairman Ben Bernanke’s speech. In New York trading, the USD weakened 0.2 percent to 84.44 yen level, while the euro rose 0.5 percent to a position of USD1, 2716. Yen also rose against the dollar also follow-up on last Tuesday