Jump in Euros “Confirms Gold as Safe Haven” as Cyprus Imposes Eurozone’s First-Ever Exchange Controls
From Adrian Ash
Thursday, 28 March 2013
The GOLD PRICE slipped back to $1600 per ounce Thursday morning in London, heading into the 4-day Easter weekend 1.3% higher from the start of March.
Silver bullion was flat for the month at $28.65 after recovering yesterday’s sharp 2.3% drop.
European stock markets shrugged off overnight falls in Asia to trade 0.5% higher by lunchtime, while commodities ticked lower.
The Euro currency meantime crept back above $1.28 – a four-month low when broken on Wednesday.
North Korea today kept open a key border crossing despite cutting the last of 3 telephone “hotlines” to the South, citing “hostilie action” by Seoul and Washington, on Wednesday.
“Gold lived up to its status as a safe haven again after all yesterday afternoon,” says Eugen Weinberg’s team at Commerzbank in Frankfurt, noting the two-month high at €1260 per ounce hit by gold in Euro terms.
“The uncertainty over the Cyprus crisis…should lend support to gold demand.”