Gold prices 'will be higher'

A spokesperson from one of the world's leading authorities in the gold industry has said that gold prices are likely to remain high in the long term.

Rolf Schneebeli, former head of the World Gold Council, said that while prices may escalate in the coming weeks, the likelihood is that the precious metal will remain steady but quite high in the months to come.

"For the longer term, I see higher gold prices based on higher inflation in the future; one can make a very good case for continued trading in the range of $855 to $950," he told the Gulf News.

Gold prices are widely expected to rise following news of nuclear weapons disputes between Iran and the west last week, because investors traditionally use gold as a hedge against uncertainty.

The World Gold council was founded in 1987 and aims to stimulate and maximize the demand for and holding of gold by consumers, investors, industry and the official sector.

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