Breaking News


Gold Falls to One-Week Low as Cyprus Deal Cuts Haven Use

Gold futures dropped to a one-week low after Cyprus agreed with euro-area finance ministers on a rescue package, reducing demand for the precious metal as a haven.

Cyprus received a 10 billion-euro ($13 billion) bailout after agreeing late yesterday to shrink its banking system. Gold advanced 1 percent last week amid concern that the European crisis would escalate. The Standard & Poor’s GSCI index of 24 raw materials jumped as much as 1.1 percent.

“The ‘risk-on’ appetite is back because of the overnight news out of Cyprus,” Steve Scacalossi, a New York-based vice president at TD Securities Inc., said in a telephone interview.

Gold futures for June delivery slipped 0.1 percent to settle at $1,606.50 an ounce at 1:42 p.m. on the Comex in New York. Earlier, the price touched $1,590.40, the lowest for a most-active contract since March 18.

The metal pared losses after Reuters reported that Dutch Finance Minister Jeroen Dijsselbloem said the Cyprus deal should be viewed as a template, and nations with large banking industries must look to restructure and reduce their size.

Silver futures for May delivery rose 0.4 percent to $28.815 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for July delivery advanced 0.1 percent to $1,586.90 an ounce.

Gold and platinum trading was double the average volume in the past 100 days.

Palladium futures for June delivery dropped 0.6 percent to $757.35 an ounce.

To contact the reporters on this story: Debarati Roy in New York at; Nicholas Larkin in London at

To contact the editor responsible for this story: Steve Stroth at

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.