“Gold declined below $1,600 an ounce in New York, following a three-week rally, as equities climbed after Cyprus agreed with euro-area finance ministers on a rescue package.
Gold advanced 1 percent last week as Cyprus struggled to secure a support from international creditors. The nation won a 10 billion-euro ($13 billion) bailout after agreeing late yesterday to shrink its banking system, instead of a previous demand to impose a levy on all bank accounts. Global equities reached a one-week high today.
“Firmness in equity markets has reduced its appeal as an alternative asset,” Mumbai-based Kotak Commodity Services Ltd. said today in a report, referring to gold. “The Cyprus issue did give a boost to the gold price. However, there is a lack of factors for a sharp and sustained rally.”
Gold futures for June delivery slipped 0.5 percent to $1,599.70 an ounce by 7:51 a.m. on the Comex in New York. Prices fell to as low as $1,599.10. Futures trading volume was 49 percent above the average in the past 100 days for this time of day. Gold for immediate delivery declined 0.6 percent to $1,599.50 in London…”
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