ABJ Sep 8 - Researchers say by 2012 gold prices could go up to $1,350 per ounce.

ANZ Commodity Research analysts forecasted this rising prices and said an explanation for this could be because of the fall in primary gold mine supply that has to be made up by rising gold prices.

"We expect the supply response to be greatest from struggling economies in Western and Eastern Europe," said research analysts to press.

"The upside surprise may come from Central Bank buying. The bulk of emerging economies are overweight US dollars and underweight gold. China is a good example, which could consume the global annual supply of gold mine production and still only hold 5% in gold to total foreign reserves," analysts added.