"When we went through the all-time high at $850, the market just ran right through it to up to over $900 an ounce. I think fundamentals drive the market more than price targets," Foster added.

Thomas Winmill, portfolio manager of the $290-million Midas Fund in New York, said, "If gold crosses $1,000 and does not significantly jump in price, I would say that the rally has legs because we haven't gotten to the point where people are investing just because gold is going up.

"It ($1,000 gold) might bring in some investment demand, and if it brings in a substantial amount of investment demand, we would advise investors to adopt a more cautious view."

David Rinehimer, director at Citi Futures Perspective in New York said, "There is a widespread investor demand ... attracted to gold. A lot will depend on how far the dollar falls, and if there is any change in sentiment toward the equities markets.

"If the dollar remains on the defensive, and equities continue to struggle, I would assume that there'll still be a flow of funds into (gold)," said Rinehimer.

Goldseek.com's Spina noted that $1,000 was a psychological barrier more than anything else.

"But $1,000 gold is pretty significant and I'm sure we'll see more interest," he said, noting that a combination of a weak dollar and high oil prices have combined to push up gold.

"The Fed (U.S. Federal Reserve) is in a Catch-22 position. With the Euro at $1.50, we are seeing more people questioning where to go. The Euro is too expensive and the dollar is not attractive, so gold is looking like the place to go for investors," said Spina.

Euro Pacific's Schiff said gold could quintuple in price, but it only reflects the value of currencies. "It means nothing, it merely expresses what the dollar is worth.

"It is a measure of the value of currencies and will go up as long as central banks continue to devalue currencies."

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