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Gold futures rise amid fresh euro zone fiscal challenges

TradingPub Admin | March 18, 2013

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The price of gold rose in value on March 18, 2013, and finished trading above the psychologically important level of $1,600, as market participants were motivated to seek the safe haven asset after fresh troubles arose in the euro zone.

April gold finished the day $13.30 per ounce higher at $1,605.90 on the Comex division of the New York Mercantile Exchange, according to Kitco News.

Greek citizens began flocking to banks and ATMs and withdrawing their funds after European Union officials proposed levying deposits held in the the banks of Cyprus in order to obtain further bailout funding, Bloomberg reports.

"The Cyprus news has spooked the financial markets," Tim Gardiner, a managing director at TD Securities Inc. in New York, told the news source in a telephone interview. "Gold is getting some safe-haven bids."

Kitco News reports that when the proposed levy on Cypriot bank deposits was announced, many participants grew concerned that this practice could also be used in other nations in the region. The citizens of the region were worried about bank runs in the area, even though EU officials indicated that this levy would be a one-time thing.

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