Gold prices today: Following Monday’s losses, bullion prices are up
The ongoing banking crisis in the US, which has heightened the yellow metal’s appeal as a safe haven in recent weeks, caused a slight increase in gold prices.
All eyes are on the two US House and Senate committee hearings on Tuesday and Wednesday, which will look into regulatory shortcomings that caused Silicon Valley Bank.
According to Craig Erlam, senior market analyst at OANDA, UK, “if turmoil in the banks lessens, we might see gold give back some of its recent gains.
The purchase of struggling lender Silicon Valley Bank by peer First Citizens BancShares Inc offered some relief to financial markets, and damaged gold’s appeal as a safe-haven asset on Monday. Prices also dropped on Monday due to worries that the US Federal Reserve might keep raising interest rates at its forthcoming policy meetings despite the persistent stress in the US banking industry.
For the second time in a row, the US Fed raised interest rates last week by another 25 basis points, bringing the federal fund rate to a range of 4.75 percent to 5 percent. The safe-haven appeal of the yellow metal, however, helped to contain the decline in gold prices as concerns about the US banking crisis could trigger a credit crunch, according to experts.
According to Jain, COMEX gold has support at $1,964-1,950 per ounce and resistance at $1,984-$2,000 per ounce. Gold prices on the Multi Commodities Exchange of India (MCX) are supported between Rs 58,920 and Rs 58,660 per 10 grams, and they are opposed between Rs 59,400 and Rs 59,720 per gram.
The second day of Gold Falls
Tuesday saw little movement in gold prices, which had dropped 1% the previous day. They remained below the one-year high of over $2,000 reached last week as worries about the banking crisis subsided and risk appetite increased.
The Federal Deposit Insurance Corporation announced yesterday that First Citizens BancShares Inc. would purchase the deposits and loans of Silicon Valley Bank. However, the demand for safe haven assets has helped the price of gold rise 7% this month as recent banking turmoil in the US and Europe stoked concerns about an impending recession.
After a Monday decline, gold prices are slightly higher in early Asian trade. A move that could help reduce elevated uncertainty in the banking system.” Gold may give back some of its recent gains if the concerns over the banking industry continue to subside, warns senior market analyst Craig Erlam of Oanda. Gold on the spot is up 0.1% to $1,958.68/oz.
