Bullion's bull run set to continue - analysts

|By:, SA News Editor

The recent increase in the price of gold, which has climbed by over 14% since dropping to almost $1,200 an ounce in June, has a strong basis and is set to continue, analysts believe.

Some of the reasons for bullion's rise include heavy demand in Asia - and particularly India, where the insatiable appetite for gold is doing nothing to help the country's current account deficit - turmoil in emerging markets, high-priced U.S. equities and the under-performance of commodities in general.

Another factor is a possible future constraint on supply as miners cut back on projects because gold has become more expensive to produce than it's worth.

Gold futures are now +0.3% at $1,375.50

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