THE head of the world's largest gold producer, Newmont Mining,...

THE head of the world's largest gold producer, Newmont Mining, is tipping the rapid economic rise of China to push the precious metal to the $US2000 an ounce mark in the next five years.

The global giant's chief executive, Richard O'Brien, said he was a firm believer that the gold price had not reached its peak, but would remain volatile.

"Five years from now, $US2000 gold will probably be in reach," Mr O'Brien said on the sidelines of the World Economic Forum on East Asia.

He said the emergence of a wealthy Chinese middle class would underpin the price rise.

The spot price of gold was $US1540.50 per fine ounce at Friday's close, ahead of the long weekend. The yellow metal has been enjoying strong gains as its attraction as a safe haven increases amid renewed global economic concerns in the US and Europe. Volatility in base metals markets and a strengthening US dollar could drive down the price of gold, but MF Global expects the price to trend higher this week and hit new records in the next few weeks.

"Support should come from economic weakness, safe-haven demand, technical factors, potential gains in investment, and the potential that Chinese commodity demand rebounds," according to the brokers.

Phillip Futures investment analyst Ong Yi Ling said gold was looking for a catalyst to break the $US1550 an ounce resistance level on a sustained basis before it could continue its longer-term uptrend.

"We are still looking for gold to be underpinned by weak economic data that is coming out from the US side," Ms Ong said.

Newcrest's Mr O'Brien said gold would sit in the range of $US1500-$US1600 an ounce for the next year, with the market focused on concerns about China's ability to sustain its growth, and the potential for a double-dip recession in the US.

But he said that, no matter what happened in global markets, the price of gold would remain above $US1000 an ounce for the foreseeable future. Mr O'Brien also said global demand and supply conditions were set to ensure that the price remained robust over time, with entrenched weakness in the US dollar to persist as congress showed no sign of reining in the country's budgetary woes. "I've got to believe that the US dollar goes lower over time," he said.

Demand from China and India for gold as jewellery and an investment would be strong, he said.