Gold is is still one of the most secure investments, said Muhammad Azouz, deputy chairman of the National Committee for Precious Metals at the Council of Saudi Chambers of Commerce and Industry.

He pointed out that gold prices rose from $1,540 to $1,800 per ounce this month.

Speaking to Al-Eqtisadiah business daily, Azouz attributed the price increase to global economic developments adding that consumers need not panic over the current market trends.

Spot gold prices were trading at $1,784.80 an ounce in New York on Wednesday.

Prices held steady near a record high on Wednesday after a Franco-German summit failed to convince investors that the euro zone debt crisis would be solved effectively, supporting safe-haven demand for bullion.

“Gold prices are controlled by economies of countries, not speculators or investors,” Azouz pointed out.

He said the prices went up abruptly due to the intervention of major economic forces and central banks, he said. “If there is an increase of $10 per ounce it would lead to leading prices by SR1,000 per kilo,” he pointed out.

Azouz said prices went up by $260 from July 8 to Aug. 8. As a result, gold prices in the Kingdom rose by SR26,000 per kilo.

During the same period, prices in the Saudi market soared by 12 percent from SR187,000 to SR218,000 per kilo.

“During the past one year from Sept. 2, 2010 to Aug. 8 the prices rose by 14 percent to reach SR73,000 per kilo,” Azouz said.

In January this year, gold prices were stable at SR158,000 per kilo but by Aug. 8 it rose to SR218,000, registering an increase of SR60,000.