With more and more people opting for gold as an investment option, the yellow metal is on track to set record levels, probably this year.

According to market analysts, prices will range anywhere between $590 and $690 per ounce, averaging at $640-650 levels this year.

In the first two weeks of March, the average price of gold has been high at $650, hinting that this could mean that gold is still on the upward course.

Prices could subside in the following year, but at a new level. However, analysts feel that there could be a consolidation period for the gold prices for the next two years, keeping in mind the economic environment.

If the strong real growth and industrial development continues in the next five years, it would be good for commodities in general, said a source.

Another feeling in the bullion market is that the risk premium built into the gold price is not going to reduce any time soon. Even though the gold prices come down in 2008-2009, it would not be risk-free. The volatility in gold price has also risen, and investment demand for the metal is very high, said market sources.

In the current bullrun for the yellow metal, which began in 2001, the investment demand has been tremendous. In the last five years, global investment demand has been close to 241 million ounces, of which India accounts for almost 20 per cent.