Gold reaches four-week high amid Cyprus uncertainty

<p>Uncertainty over Cyprus has forced gold prices up.</p>

The price of gold keeps going up and has hit a new four-week high today (March 21st) amid the ongoing uncertainty over the financial situation in Cyprus.

A first bailout plan has been thrown out by the country's parliament, which is voting on a second set of proposals this afternoon.

In the meantime, investors have rallied towards gold and according to a report from Reuters, spot gold hit its highest since February at $1,616.36 (£1,065.07) an ounce.

Speaking to the news provider, Commerzbank analyst Daniel Briesemann stated there are a lot of arguments to be made in favour of investing in gold at the present time.

He explained the uncertainty in Cyprus is one of these, along with the fact that the Federal Reserve in the US has been reiterating it will continue with quantitative easing.

MKS SA head of trading Afshin Nabavi explained a dip in the price of gold yesterday was due to some traders cashing in on their profits.

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