Gold Climbs Higher as Cyprus Debacle Continues
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.
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Disclosure: Long EXK, AG, HL, PHYS