Gold market 'waiting on G8'

Gold prices could rise again in coming weeks, based on decisions made by the G8 Summit in Japan.

The meeting, which is being held on the island of Hokkaido, is likely to discuss the decline of the dollar and the corresponding escalating price of crude oil, both of which are factors that weigh upon gold bullion prices.

Investors in gold typically use the precious metal as a hedge, to protect their assets when currencies look threatened by inflation.

Peter Tse, a dealer at Scotia Mocatta - the global bullion banking division of the Bank of Nova Scotia - said that the market is waiting to hear any news.

"It seems like all the eyes are on the G8 announcement … if there's anything happening in oil and the dollar, that would obviously affect the precious metals market," he said, according to Reuters.

Gold is also appealing to investors after it was reported yesterday (July 7th) that Israel may attack Iran, the world's second largest oil producer, as tensions mount over its nuclear activities.

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