The value of gold as an investment was further confirmed as mining executives in two separate gold fora forecast the precious metal's rise in price amid a weak global economy.

In the past 12 months, gold prices have gone up about 40 per cent and it is now trading at $1,780 an ounce. Although gold price reached a peak of $2,038 before the end of 2010, a survey by Bloomberg predicts that gold will return to the $2,000 per ounce level by the year end.

The optimistic outlook was based on a Bloomberg survey of 16 analysts at the yearly conference of the London Bullion Market Association in Montreal. Their forecast is that the metal will hit a peak of $2,268 average in 2012.

"This is largely a crisis of confidence, and gold is a safe haven.... I see little chance of gold falling," Bloomberg quoted Edelweiss Financial Services President Rujan Panjwani.

Yamana Gold Chief Executive Peter Marrone pointed out at the ongoing Denver Gold Forum that all the elements for higher gold price are present, namely: geopolitical risk, economic uncertainty and inflation.

"It just seems natural to me for gold prices to go to substantially higher levels," Mr Marrone told Reuters.

"The conditions for gold right now have never been better.... Not only is it a safe haven for investors and offers a unique alternative to currencies, but the fundamentals of supply and demand are extremely strong," Reuters quoted Kinross Gold CEO Tye Burt.

Major contributors to the non-stop rise in gold prices include the debt contagion in the eurozone, the growing U.S. budget deficit and political unrest in the Middle East.

It is the 11th straight year of a bull market for gold and the longest winning streak since at least 1920 in London as investors diversify away from equities and currencies. On Aug. 8, holdings in exchange-traded funds backed by gold jumped 31 per cent in the past two years and reached a new record of 2,260.6 metric tonnes.

Newmont Mining Corp. CEO Richard O'Brien forecast the bullish gold price to last for the next five to seven years which is the same period it would likely take governments and people to get their fiscal house in order.

Gerhard Max Schubert, head of Emirates NBD's precious metals, consumer banking and wealth management, foresees gold prices rallying through June.

"I think people should look for an exit strategy in the second half of next year.... Nothing is going to happen in U.S. policy until the presidential election, and it gives a year to sort things out in Europe and come up with a credible solution," Mr Schubert was quoted by Bloomberg.