Strategy
Cyprus Crisis Leads Investors To Seek Safe Haven In Gold

The gold price rallied last week as uncertainty around the future of Cyprus and of the eurozone as a whole spurred demand for safe-havens. Research from ETF Securities shows that gold exchange-traded commodities saw the biggest inflows in seven weeks, totalling $139.4 million, in response to the Cyprus banking crisis.
Looking ahead, ETF Securities expects Cyprus to remain in focus as details of the newly-agreed bailout unfold. On the data front, it says there will be a series of US economic releases this week, including quarter four GDP, housing statistics and confidence level. Strong numbers are likely to confirm the improving growth outlook, providing support to more cyclical commodities, the firm said. German retail sales and unemployment rate will also be released this week and will be monitored closely for signs of the European crisis spreading to the core.