{"id":40065,"date":"2013-07-16T09:02:56","date_gmt":"2013-07-16T13:02:56","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=40065"},"modified":"2013-07-16T09:02:56","modified_gmt":"2013-07-16T13:02:56","slug":"precious-metals-gain-as-cyprus-back-tracks-on-selling-reserves","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/07\/16\/precious-metals-gain-as-cyprus-back-tracks-on-selling-reserves\/","title":{"rendered":"Precious Metals Gain as Cyprus Back-Tracks on Selling Reserves"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Adrian Ash<\/strong>
\nBullionVault<\/strong><\/a><\/span>
\nTuesday, 16 July 08:25 EST<\/strong><\/p>\n

PRECIOUS METAL prices\u00a0rose Tuesday morning in London, after the finance minister of Cyprus said selling some of the debt-laden Mediterranean island’s gold reserves was “only an option” for raising cash.<\/p>\n

\u00a0“The possibility of selling gold is known, but only as an option,” Harris Georgiades told journalists in Nicosia.<\/p>\n

\u00a0“It will be considered, when the time comes, with options, or rather, all other options.”<\/p>\n

\u00a0Last week the Cypriot president Nicos Anastasiades said that “I want to believe there will never be such a need” for selling some gold reserves.<\/p>\n

\u00a0“The issue is not being discussed by the government, it is\u00a0a responsibility of the central bank<\/a>,” he was quoted by Reuters.<\/p>\n

Mid-April’s proposal that\u00a0Cyprus should sell some of its small gold reserves<\/a>\u00a0saw the metal drop more than 15% over the next two trading days.<\/p>\n

\u00a0Despite holding only 13.9 tonnes of gold bullion, the idea was seen by some analysts and traders as\u00a0“the thin end of the wedge”<\/a>\u00a0for other debt-laden countries in the Eurozone.<\/p>\n

All told, Eurozone central-bank gold reserves total 10,783 tonnes.<\/p>\n

That’s more than one ounce in every three held in official-sector bullion vaults according to data compiled by the World Gold Council.<\/p>\n

\u00a0“The April price moves [after talk of Cyprus’ gold sale] severely damaged the notion that gold provides any degree of risk protection or really acts as a safe haven,” says a new gold price forecast from analysts at Citigroup.<\/p>\n

\u00a0“We see little prospect of investors returning to gold in the short or medium term,” they add, forecasting a fresh 3-year low of $1100 per ounce by end-2013.<\/p>\n

\u00a0Technical analysis of the gold price charts by Barclays sees gold falling to that level in just the next two months.<\/p>\n

\u00a0Meantime Tuesday, silver followed the\u00a0gold price<\/a>\u00a0higher, regaining the $20 per ounce level, while European stock markets ticked up.<\/p>\n

\u00a0Commodity prices also rose, as did major government bond prices.<\/p>\n

\u00a0“[Gold] investors remain sidelined,” reckons Xiang Nan, analyst at CITIC Securities Futures Co. in Shanghai, quoted by Bloomberg, “before Bernanke’s testimony [to Congress on Wednesday] for clues on the Fed\u2019s stance on monetary stimulus.”<\/p>\n

\u00a0“Gold price gains are expected to stall around $1300 as physical buyers stay away.”<\/p>\n

Ahead of the US Fed chairman’s twice-yearly appearance before the House Financial Services Committee on Wednesday, the US Dollar slipped against the Euro single currency.<\/p>\n

That capped gains in the Euro price of gold at \u20ac986 per ounce, in line with last week’s close.<\/p>\n

April’s initial gold sales plan, proposed by Cyprus’ other Eurozone partners, the European Central Bank and the International Monetary Fund, was intended to raise\u00a0\u20ac400 million of a total \u20ac10 billion rescue package.<\/p>\n

\u00a0The same quantity of gold bullion if sold at Tuesday’s AM London\u00a0Gold Fix<\/a>\u00a0would have raised only\u00a0\u20ac314 million.<\/p>\n

Adrian Ash<\/strong><\/span><\/a><\/p>\n

BullionVault<\/strong><\/span><\/a><\/p>\n

Gold price chart, no delay | Buy gold online<\/strong><\/span><\/a><\/p>\n

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.<\/p>\n

(c) BullionVault 2013<\/p>\n

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events \u2013 and must be verified elsewhere \u2013 should you choose to act on it.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

London Gold Market Report from Adrian Ash BullionVault Tuesday, 16 July 08:25 EST PRECIOUS METAL prices\u00a0rose Tuesday morning in London, after the finance minister of Cyprus said selling some of the debt-laden Mediterranean island’s gold reserves was “only an option” for raising cash. \u00a0“The possibility of selling gold is known, but only as an option,” … <\/p>\n

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