GFSM research agency is expecting a rise in the demand for gold towards the end of the year according to investors attempts to find protection from the economic instablility, currency weakness of local currency and inflation.

According to GFSM research agency gold prices may rise to $1,300 per ounce because of investors attempts to find protection from economic instability, currency weakness of local coins and inflation. “it is very likely that there will be an increase in demand for investments towards the end of the year which will lead to a price increase towards the $1,300 per ounce and may be even higher” says Paul Walker, CEO of the agency. “price are going to go up” he said (yesterday price rose by 0.1% and closed at $1,237.9 per ounce).

Last week the world gold council informed that the demand for gold bars rose by 36% during the second quarter because of increased acquisitions by gold backed foundations. This means a purchase of 291.3 tons of ETS type gold and these made the second quarter the second highest in history in terms of gold purchasing. “There is a wide enough group of people who will continue to purchase gold for a variety of reasons and this is going to be the main reason behind the price increase” said Walker in a conference in India.

Godman Sacks estimated in the beginning of week that prices will rise to $1,300 within six months while Deutche bank published an evaluation according to which gold may even rise to $1,700 because of weakening of currency.