Tuesday, 7th November 2006 (3779 views)

Iran's missile testing is having a positive effect on the price of gold in Asia according to an industry expert.

Gold prices have risen in Asia following the decision of Iran's president Mahmoud Ahmadinejad to test dozens of rockets in a military exercise.

In times of geopolitical unease gold has traditionally been seen by some as a safe investment and it appears that this is the case following Iran's flexing of military muscle, Darren Heathcote, head of trading at Investec Bank in Australia, told Bloomberg.

"The Iranian missiles are flying again, and that's keeping gold supported," Mr Heathcote remarked.

In Mumbai gold for immediate delivery climbed to $626.40 (£329) per ounce where it settled at $624.80 an ounce at 11:20 local time.

Uncertainty surrounding Iran on behalf of the west remains constant due to the country's commitment to embark on a nuclear programme.

Mr Heathcote also stated that volumes were lower in Australia as it is a public holiday in Melbourne, Australia's second largest city, for the Melbourne Cup horse race meeting.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.