Gold prices fell on Monday as a rally in equities eroded the metal’s safe-haven appeal.while investors evaluated the measures taken by the authorities to allay fears about a crisis in the global banking system.
Spot gold was down 1% at $1,958.33 an ounce. US gold futures were down 1.1% at $1,961.30.
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The sale of Silicon Valley Bank’s deposits and loans was helping shares of European lenders partially rally, pushing gold further below the $2,000 mark, which it breached last week.
Recent tensions in the banking sector bring the United States closer to recessionMinneapolis Fed President Neel Kashkari said Sunday. However, Fed officials said there were no signs that financial stress was worsening.
Last week, the US Federal Reserve indicated that was about to pause the new rate hikes, which boosted the appeal of gold, which does not yield interest.
The dollar index remained stable and moved away from the minimum of more than a month you posted last week. A stronger greenback usually makes the bar less attractive.
The slight drop on Monday can be attributed to the recovery in stocks, but the overall trend for gold remains positivesaid Carlo Alberto De Casa, an outside analyst at Kinesis Money, in a note.
Among other precious metals, spot silver was down 1.3% at $22.92 an ounce, platinum was down 1.4% at $963.13 and palladium was down 1.3% at $1,397.28. .
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