Gold gave back some of yesterday’s gain to trade at 1607.80 down by $6.00 as European leaders assured markets that the financial crisis in Cyprus could be contained. Traders remain uneasy after the Cypriot Finance Minister made no headway with the Russians. A new proposed deal that would revamp the banking system would also cause a lot of stress to depositors. It seems that the ECB has pushed Cyprus against the wall with a deadline of Monday.
Gold was on course for its biggest weekly gain in four months, after safe-haven buying prompted by crisis in Cyprus took the price to a 3-1/2 week high in the previous session. Cyprus was still scrambling to avoid a meltdown of its banking system and a possible exit from the euro, with the European Union giving the country until Monday to raise 5.8 billion euros to secure a 10 billion euro international lifeline.
Bullion hit its highest since February 26 on Thursday at $1,616.36 an ounce, with the situation in Cyprus helping to pluck the metal out of a downtrend caused as normalizing economic conditions took prices to their lowest since mid-July
But there is considerable pressure from the continuous outflow from gold-backed exchange-traded funds. Holdings of these funds are seen as a barometer of investment interest in gold.
Holdings of SPDR Gold Trust, the world’s largest gold ETF, fell 0.902 tonnes from the previous session to 1,221.26 tonnes on March 21, the lowest since July 2011. The fund is headed for a twelfth week of outflows. Asia’s physical gold market remained quiet as buyers moved to the sidelines after prices broke above $1,600 earlier this week.
In wider markets, the euro was flat against the dollar and European shares were mixed after a German Ifo business climate index fell in March.
Keep watching
over the weekend for the latest developments about Cyprus crisis.
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GOLD CURRENT TRADE
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Our Position
Bought 1Apr Gold on 20/03/2013
Entry: 1605
Sell Stop : 1605
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SILVER CURRENT TRADE
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Our Positions
Bought 1May Silver on 21/03/2013
Entry: 29.15
Sell Stop : 28.49
Bought 1May Silver on 22/03/2013
Entry: 28.60
Sell Stop: 28.49
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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
