Gold surges above $2,000 on Credit Suisse fears

The price of gold rose, driven by fears in the banking sector linked to the purchase at a bargain price by Credit Suisse, and this Monday stood above the symbolic threshold of US$2,000 an ounce.


This metal – which is traditionally a safe haven value – has risen more than 9% since the collapse of the US bank Silicon Valley Bank (SVB) ten days ago.


The purchase of the struggling bank Credit Suisse by its rival UBS, which was orchestrated this weekend by the Swiss authorities, did not reassure investors and this Monday bank shares continue to lose.


By contrast, the gold metal was up 0.33% at $1,995 by 10:15 GMT, after rising as high as $2,009.73, a one-year high.


Gold broke the symbolic $2,000 barrier twice, in August 2020 at the height of the covid-19 pandemic and in March 2022, in the first weeks after Russia’s invasion of Ukraine.


gold is "very attractive at a time when holders of large accounts at failing banks are wondering how much they will be able to recover"Rupert Rowling, an analyst at the precious metals buying platform Kinesis Money, commented in a note.


Related News

Leave A Reply

Please enter your comment!
Please enter your name here