The Cypriot government plans to sell part of its gold reserves within the next months, a decision that needs to be approved by the country’s central bank, Finance Minister Haris Georgiades said.
Metals and energy sank, sending a gauge of commodities to an eight-month low and extending a slump that Citigroup Inc. said may mark the “death bell” for the four-year rally in materials.
Investors are boosting wagers on higher commodity prices at the fastest pace in almost four years, rebounding from the least bullish position since 2009, on signs that the U.S. is accelerating and Europe’s debt crisis is easing.
Cypriot President Nicos Anastasiades vowed to keep his country in the euro as Cypriots adapted to a second day of restrictions on their use of the common currency to prevent a financial collapse.
The euro rose from near a four-month low against the dollar amid speculation Cyprus is moving closer to a deal to stave off financial collapse and prevent contagion from infecting the rest of the region.
U.S. stock futures fell, after the Standard & Poor’s 500 Index approached a record high yesterday, as German manufacturing unexpectedly contracted and Cyprus’s president worked on a new plan to obtain a European bailout.
The European Central Bank said it may cut Cypriot banks off from emergency funds after March 25 as the island nation’s president, Nicos Anastasiades, pursued options at home and in Russia to stave off financial collapse.
Oil is up a tad as the EU seems to not to be in a real hurry to pull the plug on Cyprus. The EU did promise to provide liquidity based on the existing rules, which is providing liquidity in the energy markets.
