Rising oil prices will help increase Arab investors income which in turn will influence the international gold market.
Price of gold at New York Stock Exchange was quoted at about $ 440 for troy ounce last year end, and it is set to appreciate to about 30 percent this year.
Arab's invest in gold traditionally and higher dispensible incomes may be diverted to buy gold, opined President of the Brazilian National Gold Association (Anoro) and Director at gold supplier company Marsam Metais, José Inácio Cortelazzi Franco.
Appreciation of gold prices due to increased demand in the Arab countries is only one of the factors that influenced prices, but devaluation of North American currency too was another factor, argued broker Fitta DTVM, André Luiz Nunes Silva.
Arab tradition of investing in gold is due to socio-political compulsions of the region. Instability may force people to carry their belongings, explained Silva.
Price of gold has been appreciating for past five years. During February 2001, it was quoted at $ 260 troy ounce. It went up to $ 300 beginning 2002, $ 340 in 2003, $ 420 in 2004 and $ 440 last year, he elaborated.
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