This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cyprus Bailout Worries Push Investors Into Gold

By The Associated Press

Worries about the Cyprus bank bailout drove investors into the safe haven of gold on Monday.

Gold for April delivery rose $12, nearly 1 percent, to $1,604.60 per ounce.

News about Europe's bailout plan for cash-strapped Cyprus unsettled many investors, and all three major U.S. stock indexes lost ground. Traders were surprised that the bailout plan included slapping a tax on deposits in the country's banks â¿¿ essentially forcing anyone who keeps money in a Cypriot bank to take a "haircut," or a loss.

Edward Lashinski, at RBC Capital Markets' futures group, said investors were worried about a run on Cypriot banks, and whether Europe would impose similar requirements on other struggling countries in the region. They saw gold as a safer bet, he said, because "it's hard to haircut gold."

May silver inched slightly higher, up 2.3 cents to $28.874 per ounce.

Industrial metals were a different story, with copper falling more than 2 percent and palladium more than 1 percent. Investors generally push down prices of industrial metals when they are worried about an economic slowdown, since there's less need for materials required in manufacturing.

A slowing economy in China, the world's second-largest, has hurt prices for industrial metals, Lashinski said. On Monday, an unexpected drop in homebuilder confidence didn't help either. The National Association of Home Builders/Wells Fargo builder sentiment index fell over the month, with measures of customer traffic and current sales conditions both declining from February.

"My view is, how much further can housing recover with unemployment close to 8 percent still?" Lashinski said.

May copper fell 9.25 cents to $3.428 per pound. June palladium fell $10.80 to $764.85 per ounce. April platinum was down $13.20 to $1,579.20 per ounce.

Prices for wheat and soybeans fell more than 1 percent. Wheat lost 10.25 cents to $7.1275 per bushel. Soybeans lost 16.5 cents to $14.095 per bushel.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs