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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Price Languishes On Cyprus Calm

Gold Price Languishes on Cyprus CalmAfter a tumultuous week in the financial and metals markets due to near-financial meltdown in Cyprus, the gold price slipped below $1,600 after a bailout deal was announced. Gold continued to be beaten down after a report was released indicating that bullion's bull run may be over. 

Financial markets were poised for chaos on Monday, the deadline set by the European Central Bank for a bailout deal worth 10 billion euros for the embattled Mediterranean island. Failure to reach agreement could have triggered the ECB to cut off funding to Cypriot banks, pushing the country into bankruptcy. But an 11th-hour agreement saw the ECB agree to the deal with the stipulation that Laiki, the country's second largest bank, would be wound down, and that bank deposits valued over 100,000 euros be taxed at around 30 percent.

The turmoil had run the gold price up past $1,615, but the relative calm in the Eurozone after Monday's Cypriot bailout deal caused the bullion price to languish. That, and a bearish report on gold, saw the precious metal drop once again below $1,600. CPM Group, a commodities consultant, said on Tuesday the gold price is expected to fall three percent in 2013 "as fears of catastrophic events fade." The group predicts net buying by gold investors to drop for a second consecutive year, despite an increase in buying by gold fabricators and central banks.

"What we see is weak, muddle-through economic growth for the next few years," Business Standard quoted Rohit Savant, CPM Group's senior commodities analyst, as saying. Savant also said that gold's limited gains during the crisis in Cyprus "suggests that a lot of the bullish factors that had lifted gold in the past several years are already factored in."

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,919.59 +80.85 0.48%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs