© Reuters.
Posted by Parani Krishnan
Investing.com – In what appears to be an unprecedented win, gold prices rose 9% for two consecutive quarters this month as the U.S. banking crisis and safe-haven dented a strong surge in demand, rallying thereafter even as risky assets rebounded from past lows .
The price for June delivery on New York’s Comex (future) settled on the last trading day of March at 1,986.20 an ounce, down $11.50, or 0.6%.
Over the course of the week, US gold futures were lower, down $15.50, or 0.8%, compared to the previous Friday’s settlement of $2,001.70.
But for the month, it was up 8%, and more importantly for the quarter, it generated a gain of $160 which translated into a win of about 9%.
This quarterly gain is particularly significant as Investing.com data indicates that it is the first time that gold has posted such a large quarterly advance back-to-back. In the previous quarter between September and December, gold futures recorded $154, or 9.2%.
The shining star in gold’s sky has been the metal’s proximity to the $2,000 target for most of this month. In the past two weeks, Comex futures have breached $2,000 on six occasions, reinforcing expectations that they will reach $2,100 in time for a new record high.
Gold’s gains came even with a 6% rally over the past three weeks, shrugging off contagion fears from the US banking crisis that led to the collapse of two banks and the bailout of another amid troubles in Europe’s banking sector as well.
“It was a very good start to the year for gold, and the banking turmoil in March was another bullish catalyst for that; said Craig Erlam, analyst at online trading platform Onada:
The Fed, which added 475 basis points to the Fed through nine rate hikes over the past 13 months, is expected to end the May-June tightening cycle. The central bank has ruled out any interest rate cuts for this year, although analysts aren’t quite sure of that.
