Analysts see gold as high as $600 in 2006

Gold, at its highest in a quarter of a century, is set for further gains in 2006 and has the potential to breach $600 an ounce, analysts said on Wednesday. Investment bank Macquarie and precious metals refiner Heraeus said gold had strong fundamentals.

Another bank, Barclays Capital, was more skeptical about many of the factors often used to explain gold's rally, but said it recognized early signs of a changing attitude toward bullion among longer-term investors.

Further dollar weakness, talk that Asian central banks might buy gold and increased inflows of new investment money were all cited as positive factors for bullion.

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