China c.bank researcher warns of gold price risks -paper

BEIJING, Sept 1 (Reuters) - Investors must be cautious in buying into gold and alert to possible gold price 'plunges' caused by heavy selling by overseas central banks, said Zou Pingzuo, a researcher with the People's Bank of China.

'Amid a hot wave of gold investment, investors must be even more cautious about getting into the market; they must be alert to any gold price plunges triggered by sell-offs at central banks in overseas countries, including the United States,' Zou was quoted by the Financial News, a central bank paper, as saying.

The comments came as U.S. gold futures rallied to a two-month high on Tuesday, as uncertainty about the economic recovery boosted the metal's appeal as an alternative investment.

(Reporting by Zhou Xin and David Stanway; Editing by Jonathan Hopfner)

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