The price of gold fell to its lowest level in more than 18 months amid fears that sales of the precious metal forced on Cyprus by its desperate financial plight would lead to wholesale dumping by hard-pressed countries in the coming months.
At the end of a week dominated by the plight of the troubled island nation, gold slid below US$1,500 an ounce for the first time since July 2011 in anticipation that Cyprus would raise £400 million (HK$4.8 billion) by offloading some of its reserves.
Share prices also fell on the major European bourses after the gathering of EU finance ministers in Dublin made it clear that there would be no increase to the £10 billion earmarked for Cyprus, even though the expected cost of the bailout has been raised by £6 billion to £23 billion.
While the gold sale by Cyprus is itself small, heavily indebted euro-zone nations such as Italy and Portugal could also find themselves under increasing pressure to put their bullion reserves to work.
"If Cyprus can break the gold market, then [there are] many reasons to be worried, with Slovenia, Hungary, Portugal, Spain and Italy in line," Milko Markov, an investment analyst at SK Hart Management, said. "It is a make-or-break moment for gold ... if the market can't handle the reallocation and Cyprus, then there is really a need for a bear market."
Here are my top sells for the week based on gold price crash in world market.If gold is going down from current levels,I request my clients and followers to reduce exposure to this companies or stay away for some months.The current mkt price is given in the bracket