, IncFebruary 22, 2010 – The European Union and fiscally-strapped member Greece are at odds about the necessary steps to correct the sovereign debt crisis engulfing the Mediterranean country, plunging the EU into further problems and lifting gold prices. Greece rejected demands by the commission that they take additional cost-cutting measures, something that has met with strong protests from the country’s labor unions.
Greek finance minister George Papaconstantinou has described the task of trying to save Greece’s economy as ‘changing the course of the Titanic’, saying that it will take time and that the country is currently doing enough to correct its fiscal problems. This turmoil has plunged the EU into a downward economic spiral, with several other members experiencing problems and the currency plunging to its lowest level in nine months.
This chaos has had an invigorating effect on gold prices, as the metal snapped out of a two month correction to post gains in each of the past three weeks. As of 1:00 PM EST, gold stands at $1,115.60, down $2.50. This continues a strong run as investors flee the euro and look to gold as an alternate investment option.
Investors should continue to look at adding to their holdings as gold prices remain strong and many analysts look for steady gains in the months ahead. Gold is likely to be a preferable alternative asset option over the US dollar as concerns about inflation in the United States continue to arise.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
