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An expert predicted gold would hit US$2,000 (Bt66,700) per ounce after it climbed to a fresh alltime high of $1,058 yesterday as the US dollar's slump prompted investors to buy commodities as a hedge against potential inflation.

Bullion is heading for a ninth annual gain as the US Dollar Index, a sixcurrency gauge of the dollar's value, has shed 6.5 per cent this year. The price of gold hit a fresh record high above $1,058 an ounce here yesterday as the dollar renewed its fall.

Immediate-delivery bullion yesterday advanced as much as $14.28, or 1.4 per cent, to $1,058.48 an ounce and was at $1,054.45 at midmorning in London. December gold futures were 1percent higher at $1,055.10 an ounce on the New York Mercantile Exchange's Comex Division after climbing as high as $1,059.60.

Gold may top $2,000 an ounce in the next decade, said investor Jim Rogers.

"People are printing money, gold is going up," Rogers said, adding that he might increase his holdings.

"There are plenty of reasons to buy gold when the time is right," he said.

"Bullish gold gave support to the price of other commodities, including rubber," said Kazuhiko Saito, chief analyst at Tokyobased broker Fujitomi. Rubber futures gained as much as 2.1 per cent.

Local goldbar prices were quoted at Bt16,450 per baht weight for buying and Bt16,550 for selling, while gold ornaments were quoted at Bt16,206.04 for buying and Bt16,950 for selling.

Kritcharat Hirunyasiri, president of the Mae Thong Suk (MTS) Group and director of the Gold Traders Association, said gold would likely reach US$1,100 an ounce this year after continuously breaking records.

"Most investors have sold gold bars, while only 0.5 per cent of them have bought gold. They wanted to sell for a profit first. If they really want to invest, they must hold it long term. Those wishing to invest short term should instead do so in the derivatives market, which is more volatile," Kritcharat said.

MTS is a brokerage member for gold futures on the Thailand Futures Exchange. The group established MTS Gold Futures for this purpose.

Kritcharat said lately, the derivatives market for gold futures had been very active, with higher trading volume and a new record for daily trading volume: 3,380 contracts, up from 900 a day over the past seven months.

The dollar traded at 1.4762 against the euro late yesterday morning in Singapore, from 1.4691 the day before. It fell earlier this week on concern the US Federal Reserve would be slower to raise interest rates than policymakers in other nations.