Gold price to keep climbing: analysts

Yesterday, gold futures traded in Asian markets touched US$1,138, leaping from the US$1,100 level the price of the metal had been hovering around.

Overnight, gold futures for June delivery rose US$2.20, or 0.2 percent, to US$1,136 an ounce on the Comex in New York. Earlier, the most-active contract climbed to US$1,139.60, the highest price since March 5.

Economies around the globe have been fast expanding, said analysts with the Bank of Taiwan, adding the manufacturing sector of the United States grew at the fastest pace in three months, while the procurement managers' index of eurozone countries has been above 50 over the past seven months.

At the same time, gold continues to be an ideal choice for hedging, given lingering worries concerning the debt crisis of Greece, as well as surging oil prices, which have come to an 18-month high, analysts said.

According to analysts, gold had been dropping ever since it reached a historic high of US$1,226.1 on Dec. 3. The US$1,135 mark represents a 50 percent increase from the bottom the metal had fallen to.

If gold can hang on to US$1,135, it will test the US$1,145 mark in the short-term, analysts said.

Meanwhile, gold may challenge the US$1,226.1 in the fourth quarter and may even surge to US$1,300, analysts said, citing foreign research institutes.

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