Gold Climbs Higher as Cyprus Debacle Continues

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

On Tuesday, gold (NYSEARCA:GLD) futures for April delivery, the most active contract, increased $6.70 to close at $1,611.30 per ounce, while silver (NYSEARCA:SLV) futures for May edged 3 cents lower to finish at $28.84.

Gold logged its fourth consecutive daily gain as lawmakers in Cyprus rejected the deeply hated confiscation plan on bank deposits. The 56-seat parliament casted 36 votes against the move.

The vote came shortly after a revised bank plan was submitted to spare depositors with less than 20,000 euros in their accounts. Savers with 20,000 euros to 100,000 euros would lose 6.75 percent of their money, while those with more than 100,000 euros would pay almost 10 percent.

“This is not the end of the process, but instead kicks off a further round of negotiation with Moscow and Berlin,” JPMorgan economist Alex White explained in a research note. “The Cypriot authorities wanted to conduct the vote so that they could reaffirm the extent of their difficulties to the Europeans.”

By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.45 percent, while the iShares Silver Trust (NYSEARCA:SLV) dipped 0.07 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) jumped 2.72 percent and 0.85 percent, respectively. Silver names such as Endeavour Silver (NYSE:EXK) and First Majestic Silver (NYSE:AG) both finished in the red.

Don’t Miss: Should Central Banks Use Gold to Diversify Reserves?

If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business