Gold price drops following Cyprus bailout

<p>The Cyprus bailout has seen the price of gold drop.</p>

The price of gold has fallen in the wake of the Cyprus bailout, with the commodity's value slipping back below $1,600 (£1,056) in early European trading.

On the spot market, the metal was recorded at $1,597.10/1,597.90 per ounce, which is down $8.15 on the close, reports the Bullion Desk.

“The market was a lot quieter today in Asia as the market absorbed what happened overnight,” MKS Capital analyst Alex Thorndike said.

He added he believes bulls in the market are becoming frustrated the drama surrounding the Cyprus bailout has not incited a "sterner" rally for gold up towards $1,640-1,650.

Last week, the price of gold was up to a four-week high as investors piled into the precious metal amid fears Cyprus would not be able to agree terms on its bailout.

Spot gold hit its highest since February at $1,616.36 an ounce, but the value of the commodity has been falling since then.

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