Investing.com – Gold futures are starting the week on a decent note, trading slightly higher in Monday’s Asian session on renewed fears about Cyprus’ plan to tax accounts at the Bank of Cyprus holding more than EUR100,000.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.22% to USD1,599.05 per troy ounce in Asian trading Monday. Gold futures were likely to test support USD1,591.95 a troy ounce, Wednesday's low, and resistance at USD1,608.85, Wednesday's high.
Last week, Cypriot President Nicos Anastasiades agreed to punitive losses for the Bank of Cyprus’s larger depositors in order to land EUR10 billion in aid to keep his country from going bankrupt. Cyprus was forced to agree to the levies against large Bank of Cyrpus depositors after failing to secure financial assistance from Russia.
Under the terms of the new plan, Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized.
In late March, gold reached a 90-day high last week of over USD1,616 per ounce on heightened fears about the situation in Cyprus, but the yellow metal has since fallen victim to some profit taking as Cyprus cut a deal to avoid potential bankruptcy.
Other headlines may also be stoking some safe-haven buying in bullion. On Sunday, the U.S. sent fighter jets to South Korea in a bid to show support for that country amid intensifying threatening rhetoric from the North. In recent days, North Korea has even threatened to attack the U.S.
Elsewhere, Comex silver fell for May delivery 0.35% to USD28.223 per ounce while copper for May plunged 1.35% to USD3.357 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.22% to USD1,599.05 per troy ounce in Asian trading Monday. Gold futures were likely to test support USD1,591.95 a troy ounce, Wednesday's low, and resistance at USD1,608.85, Wednesday's high.
Last week, Cypriot President Nicos Anastasiades agreed to punitive losses for the Bank of Cyprus’s larger depositors in order to land EUR10 billion in aid to keep his country from going bankrupt. Cyprus was forced to agree to the levies against large Bank of Cyrpus depositors after failing to secure financial assistance from Russia.
Under the terms of the new plan, Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized.
In late March, gold reached a 90-day high last week of over USD1,616 per ounce on heightened fears about the situation in Cyprus, but the yellow metal has since fallen victim to some profit taking as Cyprus cut a deal to avoid potential bankruptcy.
Other headlines may also be stoking some safe-haven buying in bullion. On Sunday, the U.S. sent fighter jets to South Korea in a bid to show support for that country amid intensifying threatening rhetoric from the North. In recent days, North Korea has even threatened to attack the U.S.
Elsewhere, Comex silver fell for May delivery 0.35% to USD28.223 per ounce while copper for May plunged 1.35% to USD3.357 per ounce.