Gold Performance eats away at Cyprus deal

Learn Commodity : Gold slips after bailout deal Cyprus managed to reduce the appeal of gold as a safe-haven asset. Cyprus managed to secure a € 10 billion bailout deal with Europe that could prevent the collapse of the banking sector and reduce concerns Cyprus Cyprus will exit from the euro zone. XAU / USD is now trading in 1603, moving away from a daily high level of 1613.

Gold physical demand from Asia is seen, but the amount is not so significant. "There's gold purchases in small quantities under 1610. However, sentiment is quite mixed as sightings of ETF-based funds transfer gold to the stock market," said Hong Kong dealers interviewed by Reuters. Recent data shows decline in holdings of gold-based ETF for six consecutive weeks at the end of last week.