NG:Gold Holds Above $1,600 as Cyprus Fallout Supports
Gold held steady above $1,600 an ounce on Thursday on worries the Cyprus rescue deal could become a blueprint for solving banking crises in the euro zone, supporting the precious metal’s safe-haven appeal.
Gold is on track for a 1.6 percent gain in March, its first monthly gain in six, amid concerns about the financial stability of the euro zone stoked by the crisis in Cyprus, where hundreds of anxious depositors are expected to besiege banks when they finally reopen later in the day.
“We continue to maintain the short-term outlook out of Europe remains uncertain enough to give the gold market a degree of support for the balance of the week and heading into early next week,” said Edward Meir, metals analyst at futures brokerage INTL FCStone.
