Gold Spot Price Open: $1,610
Gold Spot Price Close: $1,607
Change in Gold Spot Price:-$3
Silver Spot Price Open: $28.76
Silver Spot Price Close: $28.88
Change in Silver Spot Price:+$0.12
A new bailout agreement in Cyprus puts some pressure on gold, part of the reason why the yellow metal was down slightly on Monday. At the end of the day gold was down about 3 dollars while silver finished up a little over a dime.
The newly agreed upon deal will see Cyprus retain its position in the European Monetary Union, and while Cypriot bank accounts holding less than 100,000 euros will remain untouched, the same cannot be said about accounts containing over 100,000 euros. While the elite in Cyprus may not be happy about the impending tax upon their bank balances, this act can be seen as a warning sign to the rest of economically struggling European nations. This is so because many subsequent bailouts may be made in much the same fashion as Cyprus’. This news put downward pressure on gold because it boosted the USD, and anytime the US dollar has a good day you will be hard-pressed to see gold have a good day as well.
The news in Cyprus is sending a shock-wave throughout Europe as many investors in a given country have countless numbers of dollars in foreign accounts and the last thing they want is their money being taxed to help a country that is not their own. The EMF sees it as only fair that bank accounts be taxed, but other people think it is the responsibility of the banks and their shareholders to help bailout governments, not the responsibility of the average person with a bank account.
Despite all of this silver was up today for the first time in a few days and many are wondering if this is the first week in a while where silver will see positive output. Only time will tell if silver will actually improve upon its current standing by the end of the week, but with such an uncertain atmosphere in Europe and elsewhere around the world, things are looking up.
