TEMPO Interactive, Jakarta:Threats posed by the European debt crisis and the resignation plan of the European Central Bank official boosted gold prices to a higher level. Analyst Tonny Mariano from PT Harvest International Futures said that gold is still considered a safe investment by investors. The precious metal is in high demand amid the looming economic recession.
The analyst expects gold to reach US$2,000 per troy ounce by the end of this year. The weakening of the euro against the US dollar is not estimated to send gold prices to a decline.
The settlement of the European debt crisis and the US economic recovery are the key to gold price movements. If conditions worsen, gold prices will continue to soar.
VIVA B KUSNANDAR