A senior figure at the World Gold Council (WGC) claimed yesterday (August 17th) that Middle East investors are increasingly seeing the potential of adding gold to their portfolios, Reuters reports.

Gold Prices have increased by almost 40 percent from $680 per ounce last October to about $940 per ounce as the yellow metal's safe-haven appeal in the tough economic climate at present continues to grow.

Now Rozanna Wozniak, investment research manager at the marketing organization - which is funded by some of the world's leading gold companies - explained that Gold Investment is proving particularly popular in the Middle East.

She told the news provider: "We are starting to notice a trend whereby the volume of gold investments in rising in the Middle East and with time we believe it will balance out with retail demand.

"Unlike other commodities, gold had managed to hold its value during these difficult financial times and returns on investment were also positive."

Meanwhile, it was confirmed last week that gold production in South Africa, the world's third-largest producer of the metal, fell by 12.2 per cent on a year-on-year basis in June.

The figures, which were released by Statistics South Africa, will be viewed with interest by anyone with a gold investment as lower supplies in such a major producing nation could lead to higher demand and therefore prices.

Some industry observers are predicting that the country could soon be overtaken by Australia in terms of the volume of its gold output.

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