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Gold to Reach $2,000 by Next Year as Investment Rises, GFMS Says

Gold may climb to a record above $2,000 an ounce by early next year as concern about currencies and low interest rates spurs investors to seek a protection of wealth, Thomson Reuters GFMS said.

Prices may rebound after Europe’s debt crisis strengthens the dollar and curbs liquidity, driving bullion down to as low as $1,550, the London-based researcher said today in a report. Investment, which dropped 7 percent last year, will gain in this year’s first half as scrap sales decline and central banks buy the metal, countering a drop in jewelry demand and rising mine production. The gains through next year may come as the metal nears the “closing stages” of its bull market, GFMS said.