A perfect storm of faltering stock markets, global economic uncertainty, Middle East tension and a free-falling US dollar is elevating gold as an alternative store of value.

That view took on even more urgency on Friday, after the US Federal Reserve chief Ben Bernanke hinted at more interest rate cuts, which would further weaken the greenback.

'The probability is very high for gold to hit US$1,000 an ounce over the next three months,' said UBS Asia-Pacific metals distribution head Stephan Schlatter. 'It's hard to be negative about gold given the current situation.'

The gold rush began last yearand has increased more than 30 per cent over the past 12 months. It is already up 7 per cent since Jan 1.

It did slip back to US$894 an ounce last night after reaching US$898 earlier in the day.

Read the full story in Saturday's edition of The Straits Times.