Gold 'will not fall too far'

Although analysts and traders have seen corrections in gold prices in recent days, many remain confident that the precious metal will not fall too far in price.

It is expected that tensions in the Middle East could generate buying soon, with the US and Israel still threatening military action if the Iran row cannot be resolved, reports Reuters.

Meanwhile, the continued demand for jewelry in India and other parts of Asia is helping to alleviate any dips, with the auspicious wedding season approaching in the fall season.

"As long as the Iran issue is not settled, gold and oil prices will not decrease too much. For gold, $900 is the bottom price at this moment," said Yukuji Sonoda, analyst at Daiichi Commodities in Tokyo.

In addition, analysts told Forbes that the market is awaiting US Department of Energy data later his week, which may act to support gold prices.

Earlier this month, Jeff Clark, editor of Big Gold - an investment advice publication by Casey Research - said anyone hesitating about gold investment should purchase now before the price hits four digits again.

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