Wednesday, 27th December 2006 (3581 views)

Iran's plans to continue nuclear research could impact on the Asian gold price, according to market experts.

Global prices of gold rose following an announcement from the Iranian president, Mahmoud Ahmadinejad, that the Middle East country will continue to pursue nuclear research despite objects from the United Nations and it is expected that the price of gold could continue to rise alongside escalating oil values, reports Bloomberg.

Kishore Narne, head of research at Mumbai-based Anand Rathi Commodities, speaking to Bloomberg News, warned: "The Iran issue is back, bringing political uncertainty. This is keeping oil and gold supported."

Market analysts are forecasting that the price of gold could average around $675 (£345) an ounce over the next 12 months, compared with $603 (£308) during 2006.

Gold prices are also likely to be boosted by a general weakening in the Yen against the dollar, as more investors opt for gold bullion rather than stocks, which will put pressure on gold market prices as demand increases.

 

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