Monday, 31st July 2006 (3360 views)

Israeli defence minister Amir Peretz has rejected claims that Israel may agree to an immediate ceasefire, meaning the price of gold maintained its relatively high levels of late.

The price of gold rose to a recent high of over $670 an ounce shortly after conflict broke out in the Middle East on July 12 as investors began to look towards the precious metal as a safe bet amid global political tensions.

The value of gold has since slipped back to around $635 an ounce (Monday, July 31st) in trading but is still artificially high as a result of the hostilities between Israel and Hezbollah.

Mr Peretz said that Israel was not prepared to halt its bombing raids on south Lebanon as the threat of extremists was still a reality and they would "rear their heads anew".

Political analysts had hoped the 48-hour ceasefire, which occurred over the weekend, could be extended.

However, such faint hopes were all but dashed upon My Peretz's announcement to the Israeli parliament today that the move represented no more than a "humanitarian gesture" and that the offensive would continue unabated.

 

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