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Monday, 26th July 2004 (7688 views)

The price of gold could be set for an increase according to a new survey.<BR/><BR/>Since the price of the precious metal is now at its lowest for a month, jewellers are expected to be encouraged into increasing purchases, helping to create a rise in price.<BR/><BR/>Findings from GFMS research on 48 traders, found 24 businesses advised on buying gold, which dropped four per cent last week to $390.50 an ounce.<BR/><BR/>Zhong Yan, a trader at jewellery maker Shanghai Lao Feng Xiang Co told Bloomberg: "Buying gold at the current level will help us to reduce the costs."<BR/><BR/>In addition jewellers will increase purchases more quickly when the prices drop in order to limit any sell-off in the gold market and current terrorism concerns could also help.<BR/><BR/>Reports also suggest that the price decrease could lead to mining companies avoiding contracts that lock in prices for future delivery and some may also wish to leave earlier contracts.<img src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=3106888"/>

 

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