Gold 'somewhere to park your assets'

Investors are returning to buy gold after a period of hesitancy within the market.

Gold bullion is typically used as a hedge against inflation during times of economic uncertainty and this is prompting people to buy the precious metal amid fears over the nuclear weapons tests in Iran, experts have said.

''You've got geopolitical tensions and a shaky equity market and some of that capital is flowing into gold,'' said Frank Lesh, a trader at FuturePath Trading.

''Gold is thought to be an international currency. It's somewhere you can park capital in times of inflation and in times of geopolitical tensions.''

Meanwhile, Michael Kempinski, a trader at Commerzbank, one of Germany's biggest financial institutions, told Reuters that off-coming stock prices are also encouraging people to buy gold.

"There are probably some funds trying to park money in different areas and so they are probably going for gold at the moment," he said.

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