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Gold soars in the search for refuge and touches highs of almost a year

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The gold prices rise this Friday, March 17, pausing the fall on Thursday and reaching maximum prices since April 2022, driven by the global banking crisis that makes investors flock to this refuge asset.

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Gold rises 2.4%to u$s1,968.80 an ounceachieving a $40.4 increase from Thursday and heading to close its third consecutive weekly rise.

The price of gold rises this Friday, registering its biggest weekly rise since mid-November. Gold benefits this week from shelter operations and of the dollar weaknesssaid Ricardo Evangelista, ActivTrades Senior Analystadding that the decision in Europe to raise interest rates weighed negatively on the dollar, contributing to the strength of the gold metal.

A weaker dollaron the way to a 0.5% decline in the weekdoes bullion more attractiveas it makes them cheaper for holders of other currencies.

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The European Central Bank raised rates by 50 basis points on Thursdaykeeping up with his monetary tightening to contain inflation despite the banking turmoil.

The Silicon Valley Bank bankruptcy in the United States highlighted the bank vulnerability in the face of a rise in rates, while the fall in shares of the Credit Suisse aggravated market turmoil.

“We have to be very attentive to what the Fed does (next week)… a 25 basis point rate hike is already priced in, but it will be interesting to see what guidance (Fed Chairman) Jerome Powell gives us afterwards,” Evangelista said.

In other precious metals, the silver spot was up 0.4% at $21.80 an ounce; he platinum it was up 0.6% at $979.07; and the palladium it was up 0.3% at $1,434.35. All three metals were on track for weekly gains and silver was on track for its best week since early December.

Source: Ambito

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