Gold 'still a good option'

Gold price analysts have told potential investors that the precious metal is still a good option in which to place assets.

Although prices corrected briefly following an excellent week, analyst Daniel Hynes of Merril Lynch - one of the world's leading wealth management, capital markets and advisory companies - said this is likely to be a minor event given the current economic conditions.

"The longer-term trend for gold is still intact. Prices fell yesterday (July 16th) due to oil and better equity performance, but there is still a lot of insecurity over the US banking sector, which has driven investors back into gold," he commented to Reuters.

Gold prices have seen support in recent weeks from factors such as oil prices, the fragile dollar and uncertain returns from currencies.

US president George Bush said that Americans are facing "a difficult time" and urged congress to assist mortgage giants Fannie Mae and Freddie Mac, the Associated Press reported.

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