The price of gold fell sharply, down with below $ 1600, as the banks in Cyprus opened again, that was the first time in the last two weeks. However, despite this, a significant public panic absent, undermining demand for low-risk assets.

Recall that last week, the price of gold reached a monthly high of $ 1,616.36 on fears that financial aid for Cyprus in the amount of $ 10 billion left the majority of investors and private bond holders with huge losses, which could also be a template for future bank bailout in the euro area.

But, despite the widespread belief that the crisis in Cyprus can lead metal to second consecutive quarterly decline, many analysts now expect an increase in prices in anticipation of the holiday of Passover.

In euro terms, gold prices are sent to the monthly growth rate, which is about 3.5 percent, which is the best monthly figure since July.

We also add that the data presented today showed that the gold reserves in the fund SPDR Gold Trust, which is the largest gold exchange-traded fund in the world, yesterday remained unchanged at 1,221.260 tonnes. Note that the fund, which accounts for about 40 percent of total ETF holdings, record its largest quarterly outflow since its inception

In the short term, gold prices are likely to be supported by the comments of the Federal Reserve, which stressed that the U.S. central bank will do everything possible to keep the amount of asset purchases at the current level of $ 85mlrd. per month, while the situation on the labor market does not show signs of significant improvement.

April futures price of gold on the COMEX fell to 1597.00 dollars per ounce.