Gold was little changed after dropping to a one-week low as investors weighed concern that Cyprus’s bank-restructuring plan may be used as a template for other European nations, potentially increasing haven demand.
Gold for immediate delivery was at $1,604.10 an ounce at 9:17 a.m. in Singapore from $1,605.09. Prices fell to $1,589.87 yesterday, the lowest since March 15, after Cyprus agreed to a bailout that averted default. Platinum fell 0.3 percent to $1,581.50 an ounce even as holdings in exchange-traded products gained to an all-time high of 52.144 metric tons.
The bailout will see Cyprus Popular Bank Pcl wound down, wiping out bondholders, and will impose losses on some depositors at Bank of Cyprus Plc. Gold has climbed 1.6 percent this month, set for the first monthly gain since September, on concern the situation in Cyprus may reignite the debt crisis.
“The market isn’t done with trying to buy gold,” said Jonathan Barratt, chief executive officer of Barratt’s Bulletin, a commodity newsletter in Sydney. “This isn’t solved.”
Gold for June delivery was little changed at $1,604.80 an ounce on the Comex in New York. Holdings in bullion-backed ETPs expanded for a third day to 2,454.863 tons yesterday, according to data compiled by Bloomberg.
Spot silver was little changed at $28.835 an ounce, while palladium was at $757.05 an ounce from $757.50 yesterday.
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