Gold Recaptures $1,600 as Cyprus and Fed Chatter Take Center Stage

On Wednesday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, jumped $9.90 to close at $1,607.20 per ounce, while silver (NYSEARCA:SLV) futures for May edged 7 cents lower to finish at $28.61.

Gold recaptured $1,600 an ounce, despite the U.S. dollar index climbing higher. Cyprus appears to be on schedule to reopen banks for the first time in two weeks tomorrow, but capital controls will be in place. ATM withdraws are reportedly limited to only 300 euros, while people will be forbidden to take more than 3,000 euros in cash out of the insolvent country.

Meanwhile, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the central bank’s monetary policy is currently “not accommodative enough.” He also reiterated the point that the unemployment rate threshold is not a trigger to end current policies.

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained 0.50 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained about 0.15 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both jumped more than 2.0 percent. First Majestic Silver (NYSE:AG) increased 1.5 percent.

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Disclosure: Long EXK, AG, HL, PHYS