GOLD PRICE MAY HIT US$1,100 MARK

KUALA LUMPUR, Jan 9 (Bernama) -- Gold price may hit US$1,100 an ounce this
year amid uncertainties on the global economic front, according to Poh Kong
Holdings Bhd's executive chairman Eddie Choon Yee Seiong.

"It may be possible to hit US$1,100, looking at the current situation with
the global slowdown. We see the possibility of the gold price going up," he said
Friday.

Gold is usually an attractive proposition for those looking for a safe place
to invest their cash or as a hedge against any economic, political, social or
currency-based crisis.

As economic uncertainties are likely to persist for the foreseeable future,
gold is expected to attract safe-haven buying from risk-averse investors this
year.

"Historically, the gold price goes up in tandem with troubles around the
world. High price will give some positive news to our profit and margin," said
Choon, who also the company's group managing director.

Asked whether high gold prices would dampen the demand, he said: "According
to our records, we still see growth in sales of gold even when the price went up
quite a fair bit last year."

Last year, the gold price touched the US$1,000 per ounce mark but it later
came down to US$800 an ounce.

Gold is the main contributor to Poh Kong's revenue at 80 percent but the
company is not neglecting advertising and promotions for its gems and diamonds,
Choon said.

"Poh Kong is confident that even with high gold prices, we would not be
adversely affected as gold has an intrinsic value and consumers are turning to
gold as a tool to hedge against inflation," he said.

-- BERNAMA