The next economic milestone - $1000 per ounce Gold

From the department of gold medal forecasting:

The price of gold has soared to an all-time high of $855.10 an ounce driven by the weak dollar, rising oil prices and geopolitical concerns.

Oil prices have also jumped, with US crude gaining $2.42 to $98.40 a barrel and London Brent up $2.64 at $96.49.

Gold, which becomes cheaper for holders of other currencies when the dollar weakens, is seen as a haven in times of uncertainty and oil-led inflation.

Other metals prices have also risen, with platinum also at a record high.

"Certainly the safe-haven bid, weaker dollar and credit market turmoil has been favourable for gold, and oil hitting $97 is not doing it any disservice," said David Thurtell at BNP Paribas.

Gold prices rose more than 30% last year.

If Gold continues its price rise at even half that rate, then surely the next economic milestone (now that Oil has breached $100 pb) would be $1000 Gold (per ounce).

Gold rose 30% in 2007. If it repeats that performance this year, then it should reach $1100. Oil rose from $60 to $100 in 2007, an increase of two-thirds. If it increases at the same rate we'll see $166 per barrel by the end of 2008.

These aren't predictions, but I would say that both gold and oil still have a lot further to go before they reach a record high and begin dropping.