Gold-hits-2-1/2-week-high

SINGAPORE: Gold rose above $1,600 for the first time in more than two weeks on Monday as a radical bailout package for Cyprus threatened to trigger fresh turmoil in the Eur-ozone, driving investors to seek safety in gold. But a firm dollar and general perception of an economic recovery quickly snuffed out the rally, sending gold below the key resistance level of $1,600.


The Eur-ozone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion), but forced the country’s depositors to pay up to 10 percent on their savings, triggering fears that it could set off bank runs in other countries. This came after the Eurozone had enjoyed a few months of relative calm, investors had grown more confident in the economic recovery and banks had started paying back the crisis loans handed out by the European Central Bank.

Posted in: World News