Bank analysts have revised their predictions for the coming months in response to growing demand for Gold Bullion, Reuters reports.
UBS had announced its expectation that the price of gold would average US$700 in 2009 and US$700 in 2010.
However, this year the Swiss-based bank envisages a gold price average of US$1,000 and US$900 for next year, marking the yellow metal out as a sound long-term investment.
"Gold has rallied in most major currencies despite a firm US dollar, a sign of strong buying interest in the metal," UBS said, according to the news provider.
Meanwhile, Goldman Sachs expects the price of gold to hit US$1,000 within the next three months, compared to a previous forecast of US$700.
The US bank believes the increasing demand for Gold Bullion can be attributed to the global economic turmoil.
"If financial risks ... remain high, gold prices could remain higher for longer, presenting upside risk to our forecasts," Reuters quotes Goldman as saying.
"The recent strong demand for gold has not been irrational but rather pretty much in line with the probabilities of financial and sovereign default."
In addition to the impact of a weakening global economy, interest in Investing In Gold has been firming due to the prospect of a weaker dollar.
The dollar has slipped recently as investors are hopeful that any US stimulus package will have a positive effect on the global economy, thereby reducing the currency's appeal as a safe haven.
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