Gold initially jumped on Friday due to the results, climbing 1.7%. But the panic seems to be dissipating as investors are becoming more comfortable with the crisis. Gold had already pulled back 7.5% in 2011 and the quick move on Friday created a exit point for many gold traders.
TheStreet's Alix Steel reported that many gold traders felt that gold had already bottomed out naturally and the uprising was a good reason to buy. The "flight to safety" argument could continue to play out if Egyptian banks run out of cash or if Egyptians need to resort to gold as a form of crisis currency.
The Egyptian central bank recommended that banks close branches on Monday. Citigroup (C), Barclays (BCS) and HCBS (HBC) all reported they had evacuated small numbers of employees, but none reported shortages of cash.ATM machines were reportedly running out of cash and there is concern that when the banks do open, there could be an overwhelming amount of customers emptying their accounts. Bloomberg though quoted Mohamed Barakat, chairman of state-run Banque Misr and head of the country's banking association, said in a telephone interview that Egyptian lenders are "very liquid," with average loan-to-deposit ratios of 53 percent.
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