Gold 'set for further advances'

The price of gold is set to continue its recent gains following December’s fall, according to one expert.

Manager at Standard Bank Asia Ellison Chu was quoted by Bloomberg as saying that the price of the precious metal ’will continue to climb higher’.

Gold surged to a record high at the start of December but subsequently fell seven per cent during the remainder of the month, but Mr Chu stated that investors should be optimistic abut the future of the commodity.

’The market was so thin last month and price declines were exaggerated,’ he remarked.

In trading today (January 4th), gold for immediate delivery was up 0.6 per cent in Singapore, taking it to $1,103.43 (£683.77) at 13:53 local time.

The metal for delivery in February was also up in New York, climbing 0.7 per cent.

His comments contradict those recently made by Adrian Lowcock of Bestinvest, who said that gold prices are unlikely to maintain the rally seen last year during 2010.ADNFCR-2318-ID-19538521-ADNFCR