Gold for April delivery was shedding $2.60 to $1,608.70 an ounce at the Comex division of the New York Mercantile Exchange. The
Cyprus has needed about 17 billion in bailout funds, but European Central Bank officials have been willing to part with just 10 billion. Part of the discussions to receive those funds included a tax on bank deposits in the country, but the Cypriot parliament voted down the measure late Tuesday.
Gold popped on Monday as investors moved into the yellow metal as a safe-haven play amid fears that the bailout plan for Cyprus would spread to other distressed economies in the eurozone, and the precious metal advanced a second day for its safety appeal."The immediate threat of Cyprus is out of the market, so you're seeing a little profit-taking," said George Gero, precious metals strategist at RBC Wealth Management. Gero said Tuesday's rally witnessed open interest decline instead of advance, which he said means there was more short-covering than new buying in gold. People may be sitting on the sidelines on Wednesday in anticipation of the Federal Reserve's policy-making announcement. The Federal Open Market Committee will conclude its two-day meeting and issue a statement at around 2 p.m. EDT. FED Chairman Ben Bernanke conduct a press conference shortly after the announcement. Traders likely are searching for any hint from Bernanke and the Fed as to whether the central bank will scale back its quantitative easing programs any time soon, especially as a slew of U.S. economic indicators in recent weeks have continued to beat economists' expectations. Silver prices for May delivery were sliding 8 cents to $28.77 an ounce, while the U.S. dollar index was dropping 0.45% to $82.67. "Silver has sold off because of