Libyan Foreign Minister Announces Ceasefire

The snap drop in gold just after 8:30 was caused by the Libyan foreign minister announcing an immediate ceasefire.

In comments broadcast live from the foreign ministry in Tripoli, [Libyan foreign minister Moussa] Kusa said the country would "respond positively" to the U.N. resolution authorizing foreign intervention in Libya. The U.N. resolution paved the way for a coalition that includes the U.S., U.K. and France to take military action against Libyan leader Moammar Gadhafi's forces, who are preparing to attack Benghazi, one of the last remaining rebel strongholds.

This announcement has been treated skeptically by a French Foreign Ministry spokesman, and has not altered a vow from U.K. Prime Minister David Cameron to send war planes over Libya.


The gold market is treating the news skeptically too. After the flash drop, the metal rambled between $1,416 and $1,419. To be honest, there's good reason for the skepticism. Give Gadaffi's earlier pronouncements, why would the Libyan government suddenly give up?