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Investing.com – Updated at 12:40 GMT
It rose 1.32% to 1944 dollars an ounce. US gold futures rose 1.35% to $1,950. It decreased by 0.17%, to record 103.9 points.
While traders are reconsidering the rescue package offered to Credit Suisse, it is not expected that it will be able to protect the bank from collapse. Also, the stocks of regional US banks are returning to decline despite the $30 billion bailout package offered by the 11 largest banks in the United States to the First Republic.
And the rise of gold continues in light of the strong flow of money to safe havens, for fear of a violent recession lurking in the markets – without a historical counterpart, according to Citibank.
Read the gold analysis:
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Gold prices rose again, today, Friday, after witnessing a technical correction yesterday, Thursday, and before the emergence of US and European economic data. Where gold reversed its trend yesterday in conjunction with the release of US unemployment data and, but it closed at the settlement.
However, prices received more support from the banking crisis that still rears its head from time to time, as it caused uncertainty in the markets, which motivated investors to turn to the yellow metal as a safe haven in times of crisis.
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Gold and the dollar now
It rose 0.62% to $1,931 an ounce.
US gold futures rose 0.65% to $1,936.
Prices are preparing for the largest weekly gain since mid-November.
It decreased by 0.4%, to record 103.6 points.
gold when settling yesterday
Gold prices fell at the settlement of transactions, yesterday, Thursday, with cautious optimism about the global banking system after government interventions.
April delivery fell 0.4%, or $8.30, to settle at $1923 an ounce.
Towards the year 2000
“Longer term, gold expects moderate to strong performance in the run-up to and after both the initial cuts and the US recession make us bullish as macro uncertainty swirls,” said JP Morgan (NYSE) analysts.
JPMorgan expects gold prices to reach $2,000 an ounce soon this year.
The banking crisis continues to support gold
Credit Suisse announced that it will borrow about $54 billion from the Swiss Central Bank to support its financial position, while reports indicated that the US authorities are organizing a deal to deposit some major banks with about $30 billion in First Republic Bank.
Bloomberg said: “UPS Group” and Credit Suisse Group oppose the idea of a forced merger.
The report said that UBS prefers to focus on its strategy centered around wealth management and is reluctant to take risks related to Credit Suisse at a time when its smaller competitor seeks to buy more time to complete restructuring efforts after receiving financial support from the Swiss Central Bank.
The prices of the yellow metal rose about 3.2% since the beginning of the week, heading to record a third consecutive weekly gain, supported by the demand for safe havens after the collapse of the Silicon Valley bank in the largest bank failure since the financial crisis of 2008.
Central banks disappoint gold
“The banking crisis is supportive of gold,” said Ilya Spivak, head of global macroeconomics at TastyLife, “because it has led to a general feeling that central banks may hold back (from raising interest rates) given market risks and with credit pressures.”
But the European Central Bank raised interest rates by 50 basis points on Thursday, as concerns about rising inflation outweighed concerns about a global banking crisis.
Anti-inflationary campaign officials are expected to continue to raise interest rates by 25 basis points at the policy meeting next week, which could send gold back into a downward spiral.
course correction
“Investors are looking for safe assets to store money after the banking crisis, which triggered spikes in gold prices,” said Harish Fiveth, head of commodity research at Geojit Financial Services.
“Traders are now waiting for new signals,” he added, describing Thursday’s slight pullback as a course correction.
In general, gold prices were also supported by a weaker rival safe-haven dollar, which made bullion cheaper for overseas buyers.
Financial crisis and gold time
The United States is heading for a devastating financial crisis and now is the time to buy gold, silver and bitcoin, according to founder and CEO of Galaxy Digital Michael Novogratz.
In an interview with CNBC, Kotb compared current market conditions to December 2018, when the Fed’s hike sent markets into a tailspin. He argued that the recent recession in the commodity market, particularly the oil market, indicates that the United States and the world are heading for a recession and financial crisis.
Novogratz predicted that Fed Chairman Jerome Powell would need to pause and even cut rates soon. Thus, this could lead to a major shift that could benefit cryptocurrencies, gold and silver.
Now he is confused about him and the markets are confused with him.. How will gold, dollars and bonds react to the interest decision now?
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