Gold rises in early trade

17 Mar 2023 , 08:54 AM

Due to the global banking crisis, which has caused investors to flee to safe-haven assets, gold prices increased on Friday and were expected to rise for a third week in a row.

Spot gold was up 0.1% at $1,920.19 per ounce. To $1,925.50, U.S. gold futures increased by 0.1%.

The price of gold is expected to increase by 2.8% this week.

On Thursday, large U.S. banks pumped $30 billion in deposits into First Republic Bank, rushing to save the institution beset by a growing crisis brought on by the failure of two other mid-size U.S. lenders during the previous week.

As promised, the European Central Bank increased interest rates on Thursday by 50 basis points. In doing so, it resisted pleas from certain investors to hold off on tightening policy until the banking sector’s unrest subsided.

The number of Americans submitting new claims for unemployment benefits decreased last week by a larger margin than anticipated, indicating that the work market is still strong.

Despite the banking sector’s instability just a few days ago, U.S. central bankers are seen continuing their fight against inflation by raising interest rates by a quarter point at their policy meeting the following week.

Spot silver prices decreased 0.02% to $21.67 an ounce, platinum prices rose 0.3% to $975.47, and palladium prices increased by 0.1% to $1,432.49. For the week, all three metals were destined to rise.

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