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.
Find out about commodities trading and learn CFD strategies at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.