Gold Breaks $1,600, U.S. Consumer Confidence Sinks

On Tuesday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, decreased $9.20 to close at $1,597.30 per ounce, while silver (NYSEARCA:SLV) futures for May edged 14 cents lower to finish at $28.70.

Both precious metals continue to tread water as the Cyprus situation unfolds. Banks in the insolvent country will now stay closed until at least Thursday, in order to prepare capital controls and prevent a run on the banks. It has been more than a week since banks have opened.

Meanwhile, confidence among Americans continue to decline. The index of consumer attitudes plunged to 59.7 in March, compared to a revised three-month high of 68.0 in February, according to The Conference Board, an industry group. The results were worse than every estimate in a Bloomberg survey of 79 economists, which ranged from 60 to 72. Overall, economists expected a reading of 67.5.

By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both dipped about 0.30 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) declined 0.79 percent and 0.65 percent, respectively. First Majestic Silver (NYSE:AG) dropped about 2.0 percent.

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Disclosure: Long EXK, AG, HL, PHYS