Gold 'holds steady in Europe'

Gold prices are holding their ground in Europe despite a slight rally for the dollar and consolidation of crude oil prices.

Investors in gold are continuing to purchase the precious metal amid growing inflationary concerns, similar to those seen lately in America, Business Day reports.

"Indicators are still positive for gold - high energy prices [and] the ongoing inflation trend are definitely adding support to gold," said Frederic Panizzutti of MKS Finance.

Gold prices have been on the increase in recent days, leading analysts to speculate that another climb may be ahead, similar to that seen in March when prices reached $1,000 an ounce.

Last month, Louis Goluboff, managing director of Emerald Capital Investment International, told Commodity Online that he believes the difficult economic conditions in the US are not over yet and that gold prices will be supported by this.

He cited the credit crunch and especially the collapse of banks such as Bear Stearns as factors that could happen again.

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