Gold prices 'likely to stay steady'

Gold prices are likely to stay steady rather than rise or fall in the coming weeks, with a view to beginning to rise slowly in the long term.

This is according to Wallace Ng, chief trader for Asia-Pacific at Fortis Bank's commodities derivatives department, who said that there may not be a significant increase unless another event spurs investors to rapidly invest in gold bullion.

"The upward climb is slow and is likely to remain so in the near term as the [Iran missile-testing] event failed to provide the necessary momentum for a big move. Stronger leads are needed to for gold prices to break through the range," he commented to XFN Asia.

Mr Ng added that gold is likely to remain consolidated at around $920 to $950 an ounce.

In May 2008, analysts warned that oil prices are likely to remain high for as long as eight years, widely affecting the motoring and petrol industries, as well as the commodity sector, reported the Telegraph.

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