Wednesday, 12th July 2006 (3514 views)

The price of gold hit five-week highs on stock markets across the globe today following reports of the train bombings in Mumbai.

Seen as a safe-haven for investors, the price of gold frequently sees an upturn in fortunes amid political unrest or diplomatic turmoil. The blasts, which occurred in the Indian financial capital yesterday, have killed around 183 people and injured hundreds more.

On the New York exchange, gold closed up $17 at $643.10 an ounce yesterday (Tuesday, 11th July), with similar gains reported in London and Johannesburg.

Industry analysts have been predicting a recovery from the precious metal for some time and it seems that recent political events may have provided a catalyst for this process.

Current estimates suggest that the long-term gold price could return to May levels of $700 an ounce or more. Reports suggest the precious metal's current price is consistent with such predictions.

 

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