Last week, I mentioned rumors of Cyprus being forced to sell gold. I apologize for the inaccuracy of that rumor. The markets were focusing on comments made by European Central Bank's Mario Draghi regarding gold sales by the Cypriot central bank to cover any losses on the ECB's ELA lending facility.
"The decision (to sell gold holdings) is going to be taken by the central bank…What's important, however, is that what is being transferred to the government budget out of the profits made out of the sales of gold should cover first and foremost any potential loss that the central bank might have from its ELA." - Draghi
(Read More: Gold Hit by Panic Selling, Dragging Other Metals)