Gold 'holds steady'

Gold prices are continuing to hold their position in global markets, thanks to an unstable economy and crashing equity markets, it has been reported.

According to Thomson Financial, gold bullion is currently holding at around the $920 an ounce position, where it has consolidated for several weeks.

In addition, one analyst believes the precious metal could benefit in the long-term due to the knock-on effects of the credit crunch and that buying gold as a safe haven will be a continuing trend.

"If the IMF is correct in its assessment that the crisis could cost the global economy as much as $1 trillion, then it is a theme that is likely to remain with us for some time," said Natalie Dempster of the World Gold Council.

In related news which could also be good for investors in gold, Commodity Online this week reported that the US economy continues to look unstable, with the dollar extending losses against the euro and data showing a fall in house prices.

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