KUALA LUMPUR, Jan 9 (Bernama) -- Gold price may hit US$1,100 an ounce this year amid uncertainties on the global economic front, according to Poh Kong Holdings Bhd's executive chairman Datuk Eddie Choon Yee Seiong.
"It may be possible to hit US$1,100, looking at the current situation with the global slowdown. We see the possibility of the gold price going up," he said today.
Gold is usually an attractive proposition for those looking for a safe place to invest their cash or as a hedge against any economic, political, social or currency-based crisis.
As economic uncertainties are likely to persist for the foreseeable future, gold is expected to attract safe-haven buying from risk-averse investors this year.
"Historically, the gold price goes up in tandem with troubles around the world. High price will give some positive news to our profit and margin," said Choon, who also the company's group managing director.
Asked whether high gold prices would dampen the demand, he said: "According to our records, we still see growth in sales of gold even when the price went up quite a fair bit last year."
Last year, the gold price touched the US$1,000 per ounce mark but it later came down to US$800 an ounce.
Gold is the main contributor to Poh Kong's revenue at 80 percent but the company is not neglecting advertising and promotions for its gems and diamonds, Choon said.
"Poh Kong is confident that even with high gold prices, we would not be adversely affected as gold has an intrinsic value and consumers are turning to gold as a tool to hedge against inflation," he said. -- BERNAMA
