Gold prices rise due to banking crisis
Gold prices rise due to risk aversion in banking crisis

On March 15, gold prices rose more than 1% to their highest level since early February. The crisis in the banking sector has discouraged investors from buying riskier assets, driving them instead to the safe haven of bullion.
Spot gold prices rose 1.3% to $1,925.97 per ounce. U.S. gold futures rose 1.1% to US$1,930.80.
Shares of European banks were under renewed pressure, particularly those of Credit Suisse (CSGN.S), whose largest investor announced it would be unable to provide further financial support.
"It's a complete flight-to-security deal. There are a lot of concerns about Credit Suisse, and now European banks are coming under enormous pressure. So it's a complete flight to safety," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Gold prices in pounds hit a record high, while bullion in euros also rose from all-time highs reached last year.
"People are going to U.S. Treasury bills, gold, silver and the dollar. They are leaving riskier assets like U.S. equities and economically sensitive metals like copper, platinum and palladium," Streible said.
Despite a sharp rise in the U.S. dollar, gold rose. A strong dollar would normally weigh on bullion-priced dollar demand.
Spot silver rose 0.9% to $21.88 per ounce, while platinum fell 2.1% to $961.87 and palladium fell 4.1% to $1,444.64.
Attention continued to be focused on the Federal Reserve's next move on interest rates as it evaluates data showing higher inflation in February against the backdrop of the collapse of two regional banks.
Markets are giving a 57.1% chance that the Fed will keep its key interest rate at current levels at its March 21-22 meeting.
Gold is traditionally seen as a hedge against inflation, but higher interest rates increase the opportunity cost of owning a non-interest bearing asset. While markets will remain volatile over the next few days due to the Fed meeting, it remains to be seen how interest rates, and therefore gold prices, will move. Translated with www.DeepL.com/Translator (free version)
