Gold dips from three-week high

<p>Gold has fallen from the three-week high recorded yesterday.</p>

Gold has fallen slightly from the three-week high recorded earlier in the week.

Despite ongoing uncertainty over the financial situation developing in Cyprus, which is expected to have an impact across the eurozone regardless of the outcome, investors steered clear of the precious metal.

Spot gold hit a three-week high at $1,615.16 (£1,067) an ounce yesterday (March 19th), shortly before the Cypriot parliament rejected the proposed terms of its bailout.

MKS SA head of trading Afshin Nabavi explained to Reuters that investors are taking their profits out of gold today and this is the reason for its dip.

"Investors have not taken much action yet and await more details of the rescue plan, but prices should be well supported in the $1,600 area," he said.

Cyprus was offered a bailout if it agreed with the introduction of an emergency tax on savings accounts held by its residents, but these terms were thrown out by a parliament vote.

Another solution now has to be found, as the nation is at risk of defaulting on its loans.

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