10:36 PM
admin
Gold prices are rising as uncertainty about Cyprus sparks a flight to safety.
Gold is making a comeback, at least for today.
The precious metal shot above $1,600 an ounce Monday, as rattled investors looked for safe spots to park off while Cyprus sorts out its banking issues. Over the weekend, it seemed like the tiny nation was going to get its 10 billion euro bailout and it would be business as usual.
But then the strings were attached, in the form of a tax on all bank deposits. That caused Cypriots to swarm ATM's in an effort to pull their money out before the tax went into effect.
Banks will stay closed through Wednesday and the Cypriot Parliament won't take up the bailout issue until Tuesday at the earliest.
The proposed move sparked fear around global markets, sparking a sell-off in European and Asian stocks. The euro fell as low as $1.288 -- its lowest since November.
In turn, gold drew buyers. Gold had already started to trend higher before worries about Europe reared their ugly head. But $1,600 still appears to be a resistance point for investors.
At the same time, the SPDR Gold Shares Trust (GLD) ETF jumped more than 1%. Gold miners also got a boost. Shares of Randgold (GOLD) and Eldorado Gold Corp. (EGO) gained more than 2%.
All of that provided fodder for StockTwits traders Monday.
please give me comments thanks
0 comments:
Post a Comment