Gold gained in Asia after Iran yesterday tested new cannon and rockets, increasing the precious metals appeal as a haven.


Gold for immediate delivery rose as much as $3.2, or 0.5 percent, to $626.40 an ounce. It traded at $624.80 at 11:20 a.m. Mumbai time.

``I could imagine we would see the $1,000 an ounce price in the next six to 12 months,'' said Christian Baha, founder and owner of Monte Carlo-based Superfund Asset Management GmbH. ``After a nice correction, I believe gold will go ahead with the bull market.''

Gold is trading 12 percent below its 26-year high of $730.40 an ounce.

Volumes are less than normal today as market makers and gold traders in Australia turn their attention to the annual Melbourne Cup horse race, said Investec's Heathcote. Melbourne, the second-biggest city in Australia, is closed for a public holiday for the race.

`Profit-Taking'

Analysts including Si Kannan expect there to be selling pressure once gold rises above $627 an ounce today.

``There will be some profit-taking at these levels,'' said Kannan, an analyst at Mumbai-based Sharekhan Commodities Pvt.

Gold futures for December delivery declined $0.5, or 0.1 percent, to $627.50 an ounce in after-hours trading on the Comex division of the New York Mercantile Exchange at 10:36 a.m. Mumbai time.

Bullion for October 2007 delivery declined 16 yen, or 0.7 percent, to 2,395 yen a gram, or 74,484 yen ($632) an ounce on the Tokyo Commodity Exchange at 2:29 p.m. local time.

In India, the price of the metal for December delivery fell 11 rupees, or 0.1 percent, to 9,137 rupees per 10 grams, or 28,416 rupees ($634) an ounce, at 10:56 a.m. Mumbai time on the Multi Commodity Exchange.