Gold jumped to a two-week high, topping $1,600 an ounce, as
concern that Europe’s debt crisis will escalate increased the appeal of the
metal as a haven.
The MSCI All-Country World Index of equities slumped as much
as 1.4 percent, and the euro slid the most in 14 months against the dollar
after European finance ministers proposed a levy on bank deposits in Cyprus as
part of a bailout. Gold climbed to a record $1,923.70 in September 2011, partly
because of Europe’s fiscal woes.
“The Cyprus news spooked the financial markets,” Tim
Gardiner, a managing director at TD Securities Inc. in New York, said in a
telephone interview. “Gold is getting some safe-haven bids.”
Gold futures for April delivery rose 0.8 percent to settle
at $1,604.60 at 1:38 p.m. on the Comex in New York. Earlier, the metal reached
$1,610.40, the highest for a most-active contract since Feb. 27.
A vote by the Cypriot parliament on the tax was postponed
until tomorrow. European policy makers signaled flexibility on the application
of the unprecedented levy. A poll showed 71 percent of Cypriots said that the
government should reject the plan, and people lined up at cash machines to
withdraw funds.
(Source: Bloomberg)
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