Gold prices 'to creep back up'

Although gold prices have seen some consolidation in recent days, investment in the precious metal will continue in the long term.

This is according to David Holmes, director of precious metals sales at Dresdner Kleinwort - the commercial and investment banking division of Dresdner Bank AG - who said that the lower prices could tempt people back into investment.

"We've had a significant correction off our highs and people are now tip-toeing back into the market," he commented to Reuters.

Meanwhile, Ralph Preston, a commodity analyst at commodity brokerage services Heritage West Futures in San Diego, said that he believes gold prices will continue to rise.

"The fundamentals haven't changed for oil and gold. The washout in the metals has, for the most part, run its course. I'm comfortable wading back in," he told Bloomberg.

Earlier this month, Tom Kendall, an analyst at Mitsibushi International, predicted that gold prices will be back up to the record-breaking levels last seen in March by the end of 2008.

He said gold bullion is gaining support from investors looking for decreased risk.

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