Gold prices decline in early trade

27 Mar 2023 , 09:23 AM

Gold prices declined in early trade today. Spot gold was down 0.1% at $1,975.76 per ounce. Futures for U.S. gold decreased 0.3% to $1,977.20.

The dollar index was up by 0.1%.

The news that First Citizens  was in advanced negotiations to buy Silicon Valley Bank helped to calm people’s anxieties.

Neel Kashkari, president of the Minneapolis U.S. Federal Reserve, stated on Sunday that recent stress in the banking industry and the potential for a secondary credit crunch moves the United States closer to recession.

According to the CME FedWatch tool, markets are pricing in an almost 87% chance of the Fed keeping interest rates unchanged at its meeting in May.

Even while rising interest rates tend to deter investment in non-yielding metal, gold is nevertheless regarded as a hedge against inflation and economic uncertainty.

In response to worries that regulators and central banks have not yet managed to prevent the greatest shock to the banking industry since the 2008 global financial crisis, shares of Deutsche Bank fell sharply on Friday.

Physical gold dealers in India were compelled to give the biggest discounts in over a year to entice customers turned off by a record rise in local prices last week, while China, the world’s top consumer, saw sustained demand driven by the banking crisis.

Spot silver remained unchanged at $23.22 an ounce, while platinum and palladium both decreased by 0.2% to $974.74 and $1,413.58, respectively.

For feedback and suggestions, write to us at [e-mail]