Gold prices 'will rise in long-term'

The price of gold is expected to increase further in the longer-term, according to one expert.

Speaking to Express Money, Ajay Mitra of the World Gold Council said that a number of factors are pointing towards a positive upward trend for long-term gold prices.

He cited high oil prices, the weakening dollar, a "bleak" economic forecast for the US and relatively poor results from banks, as well as a number of write-downs, as important elements in keeping the yellow metal high.

"Investors have, therefore, turned to gold due to its record of being a safe haven. All these factors have spurred prices," Mr Mitra remarked.

Mining issues are also coming to the fore, with some major miners reporting or predicting lower gold output and consequently pressuring the supply of gold bullion to the market.

Central bank gold sales have also been predicted to fail to meet their upper limit by precious metals consultancy GFMS, which may further restrict the quantity of gold available.

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