Gold Prices Edge Lower as Cyprus Bailout Concerns Eased; Silver Prices Fall Sharply
Gold prices pared initial gains to end lower on Friday as concerns over financial system meltdown in Cyprus eased considerably after the Cypriot Parliament convened an emergency meeting (on Friday), to discuss EU proposal over the bailout deal. Silver prices, meanwhile, fell sharply on Friday.
In addition, news that Greece was ready to buy out local units of affected Cypriot banks also dispelled investors’ concerns, according to Reuters.
At last check, U.S. gold futures for April delivery edged down 0.5% to $1,605.80 an ounce while spot gold lost 0.42% to $1,607.30 an ounce. Silver futures slumped 1.91% to $28.655 an ounce.
Earlier on Thursday the European Union warned Cyprus to reach a bailout deal within next four days (by Monday) or else the financial aid package will be cancelled. The warning fanned fears of possible exit of Cyrus from the euro zone, boosting the demand for safe-haven bets. On Friday, during Asian trading hours, gold extended gains from its three-month high, hit in the previous session after the news emerged that talks between Russia and Cyprus failed, putting an end to speculation that teetering financial system of Cyprus will get some lifeline from Moscow.
However, the metal pared gains after Cypriot Parliament held special meeting—a move seen as last ditch effort to save the country from going through financial system meltdown. Still, the metal is on course to post biggest weekly gains in last two months.
Meanwhile, holdings of SPDR Gold Trust (ETF) (NYSE: GLD), the world’s largest gold backed exchange traded fund, dropped 0.902 tons from the previous session to 1,221.26 tons on March 21, the lowest level since July 2011, a data provided by Reuters showed.
More Posts by this author
- Boeing to Lay off 800 Employees by the Year End (BA)
- Micron’s Gross Margin Improves, Q2 Revenue Beat Estimate, Shares Rally (MU)
- Stocks End Sharply Higher
- Gold Prices Edge Lower as Cyprus Bailout Concerns Eased; Silver Prices Fall Sharply
- U.S. Stocks Steady, European Stocks Shed Losses to Turn Higher
- Forex Market Update: Cyprus Bailout Crisis, German Economic Data Put Pressure on Euro
- U.S. Stocks Edge Higher as Cyprus Bailout Concerns Ease
 |
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
|
