Gold prices rise in early trade

16 Mar 2023 , 08:26 AM

On Thursday, gold prices increased marginally as problems at the Swiss bank Credit Suisse stoked new concerns about a global banking crisis and encouraged traders to buy the safe-haven commodity.

Spot gold was up 0.1% at $1,919.86 per ounce after increasing by more than 1% on Wednesday. Futures for U.S. gold decreased 0.2% to $1,927.80.

On Wednesday, shares of Credit Suisse fell as much as 30% after the lender’s largest shareholder announced it was unable to offer additional support. This prompted the CEO to reaffirm the company’s financial stability.

As a first for a central bank, Swiss regulators guaranteed a liquidity lifeline to Credit Suisse.

According to data released on Wednesday, U.S. retail sales decreased 0.4% in February as a result of a decline in purchases of cars and other commodities.

According to unrelated statistics, February’s surprise 0.1% decline in U.S. producer prices.

According to the markets, there is currently a 51.1% possibility that the US Federal Reserve will decide to keep interest rates unchanged in March.

As low interest rates are expected to minimise the opportunity cost of owning non-yielding bullion, gold is regarded as a hedge against economic uncertainty.

Because of the 0.1% decline in the dollar index, gold became more affordable for buyers using foreign currencies. Benchmark 10-year Treasury yields in the US decreased.

Spot silver increased by 0.2% to $21.84 an ounce, platinum increased by 0.1% to $962.96, and palladium increased by 1.4% to $1,467.90.

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