Gold Strong, Driven By Problem Cyprus

Learn Commodity : Gold traded near its highest level in 3 ½ weeks on Friday, the high demand for safe-haven for fear of a potential financial crisis in Cyprus, where the condition puts gold on track for the biggest weekly gain in four months.

Time goes to Cyprus to quickly get a solution to achieve international financial aid, if not, they will face the collapse of the financial system and may be out of the euro zone.

Cyprus crisis has given impetus to the rise in gold prices, after investors were not interested in precious metals and more piling investment into the stock market where the rally so far this year because of the bright economic outlook.

The price of gold is now moving flat dikisaran $ 1612.40, is on track for a 1.2 percent gain for the weekly rate.

"Gold is likely to remain strong in the short term due to Cyprus," said Li Ning, an analysis in Shanghai CIFCO Futures.

"Although Cyprus only country with a small economy, there is concern about the widening of the risk if the crisis can not be resolved."