Cyprus Seeks Russian Loan

The price to invest in Gold dipped a modest 0.40 percent or $6.40 to close at $1,605.40 an ounce on Wednesday, after the Cyprus Parliament unanimously rejected the European Union's 10 billion euro bailout plan which included a proposed levy of up to 9.9 percent on all deposits in Cypriot banks. The price to invest in Silver followed Gold, easing 0.35 percent or $0.10 to close at $28.77 an ounce, while the Gold/Silver ratio rose to 55.80 as Silver under-performed Gold.

Cyprus, in an attempt to buy itself some time, has extended the shutdown of Cypriot banks until at least next Tuesday to avert a run on the institutions after snubbing the EU's offer and decided to turn instead to Russia for a 5 billion euro loan and an extension on an existing 2.5 billion euro loan. Some feel the crisis has been blown out of proportion because of the size of the Cyprus economy.

"Cyprus is not a big story in terms of the size of its economy and the financial involvement," said Dominic Schnider, of UBS Wealth Management. "The question (on Gold) at the end of the day is if we have high inflation. If your view is that inflation will gear up faster than interest rates, then the story is still good and Gold should recover to $1,800 an ounce 12 months from now," says Schnider.

 In the meantime, the Federal Open Market Committee (FOMC) voted 11 to 1 on Wednesday to leave the current monetary policy virtually unchanged. The Fed said unemployment is expected to remain elevated until at least 2015, suggesting short-term interest rates will remain near zero until at least that time.

Chairman Bernanke, at his news conference after the FOMC meeting, said that while the economy has shown improvement, the Fed will continue its aggressive stimulus policies until it's convinced the economic gains are sustainable. Bernanke went on to explain that a 6.5 percent unemployment rate is merely a target and it will not automatically trigger a rate increase, when it is reached.

Meanwhile, the U.S. Senate passed legislation on Wednesday that will avoid a partial government shutdown, and could signal the start of bipartisan cooperation on future federal spending. 

===================================================

GOLD CURRENT TRADE

=================================================== 

Our Position 

Bought 1Apr Gold on 20/03/2013

Entry: 1605

Stop Loss: 1585

Target to sell --- Sell 1 April Mini gold at 1633

Resistance 1619-1622 and then 1630-1635

===================================================

===================================================

SILVER CURRENT TRADE

=================================================== 

Our Position 

Bought 1May Silver on 21/03/2013

Entry: 29.15

Stop Loss: 28.30

Target

Sell 1 May Silver 30.30
===================================================

 

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. 

 King Regards