• Tuesday, December 05, 2023
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Gold pares losses as Cyprus momentum slows


Gold cut some of its earlier losses on Monday as the euro retreated and equity markets pared gains after investor euphoria for Cyprus’ last-minute bailout deal lost some momentum.

Reuters report yesterday showed that Gold hit its weakest since March 15 at $1,589.49 earlier. It was seen down 0.3 percent to 1602.91 an ounce by 1543 GMT. Prices were still on course for their first monthly gain however – standing around one percent higher on the previous month so far – after posting declines every month since October.

Some investors had picked up gold as the crisis in Cyprus had re-ignited euro zone debt fears, sending bullion to a one-month high of $1,616.36 an ounce last week.

The deal with international lenders averted a collapse of the island’s banking system, leading the precious metal down.

U.S. gold futures for April delivery also dipped to a 10-day low of $1,588.40 and were later seen at $1,601, still down 0.3 percent.

The metal broke strong technical support at $1,600 but managed to regain some lost ground, at least for now. Traders said that a sustained push below that level would see the metal enduring further losses.