American Bullion -- The Price Of Gold Steady

Friday, March 05, 2010 at 12:00pm

March 5, 2010, Los Angeles – The price of Gold held steady above solid support following the release of the February jobs data on Friday. The non-farms payroll data came in slightly better than expected with a drop of 36,000 jobs instead of the forecast 50,000 and unemployment held steady at 9.7 per cent.

With the U.S. unemployment rate approaching double digits, investors are finding a safe haven for their investments by purchasing physical Gold. The dollar fell against the euro after the Greek parliament approved the second package of budget cuts intended to tackle Greece's economic crisis.

As parliament met inside, thousands of citizens protested outside the building over the austerity measures that are mandating cuts in worker’s wages. German Chancellor Angela Merkel and Greece's George Papandreou met on Friday to discuss the deepening financial crisis. Merkel said the two leaders have a "very good understanding of each other" and added: "Greece and Germany will work together toward a further modernization of Greece."

With debt payments coming due, tensions are rising in Greece over whether Germany will provide its support for a European Union bailout of the heavily indebted Mediterranean country. Investors continue to turn to Gold bullion for its safety during these times of currency instability. The price of Gold is currently at or near its highs against the major European currencies.

Mark O’Byrne, executive director of Gold Core in Dublin says Gold’s rebound from a three-month low the past month “could signify the end of the recent correction, especially as it has coincided with a period of strength for the dollar versus the euro and sterling,” he added: “There definitely appears to be a trend for higher gold prices forming.” Gold has shown tremendous strength in the last few weeks. This has lead to more forecasts for the price of Gold to reach new highs. There has never been a more appropriate time to own physical Gold than right now.