Gold is likely to see a significant correction before the end of the year but prices are forecast to reach a new record early in 2008, according to the Royal Bank of Canada, which hosts its annual gold conference in London today.

RBC said the metal, which was yesterday trading at $808.05 a troy ounce, would fall to the $725-to-$750 range before rising to $900, above the record high of $850 an ounce in January 1980.