Factors that support gold 'unlikely to change'

Gold prices are likely to remain high because the fundamental factors which support them will continue.

This is according to Austria's Erste Bank's special report on gold, which points out a number of things that could support the metal, including a fall in primary production, increased demand from central banks and more buying in the jewelry sector, reports Mineweb.

"Investment demand should continue to increase for commodities in general and gold in particular, with most investors and funds underweight in the sector. Investors are beginning to remember the benefits of gold and in effect its remonetisation has begun," commented analyst Robert Stoeferle.

He added that he forecasts gold prices will remain positive for the long term, lasting at least until the end of 2008.

Gold prices reached their highest in almost three months earlier this week, supported by demand following ongoing tensions between Iran and the west.

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