Gold Prices indicate economic crisis 'is not over'

A leading commodities analyst has suggested that recent increases in Gold Prices indicate that the economic crisis is far from over.

Bill O'Neill, partner at New Jersey-based commodities firm LOGIC Advisors, said that the package was little more than a delaying tactic, according to Reuters.

He told the news provider: "While [the economic package] provided at least a temporary band aid for the sovereign debt crisis, there is still a potential for significant problems and the need to potentially do more.

"I just don't think there is a high level of confidence. This package bides time but it doesn't indicate that the crisis is necessarily over, and that's what gold is reflecting."

Meanwhile, Swedish bank SEB told the Wall Street Journal that the recent European aid package would only serve to spread the continent's debt problems from the weaker euro countries to the stronger ones, which could in turn weaken the euro.

The bank said in a report seen by the Wall Street Journal: "Debt is fought by more debt in other places, putting the euro and in the longer run most western currencies under fire. In this environment investors rush for gold."

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