Gold futures closed higher for the second consecutive day on Monday, March 20, with the market still gaining support from investors buying gold as a safe-haven asset amid concerns about the crisis in the banking sector. The dollar’s depreciation was also a factor that helped the market.
- Gold futures rose $9.30, or 0.47%, to close at $1,982.80/ounce.
- Silver futures rose 18.40 cents, or 0.82%, to close at $22.646/ounce.
- Platinum futures rose $18.20, or 1.86%, to close at $996.80/ounce.
- Palladium futures rose $16.50, or 1.7%, to close at $997.40/ounce.
The gold contract closed at its highest level in 11 months, or since April 18, 2022, after rising above $2,000 during the day. This was due to concerns about the crisis in the banking sector leading investors to buy safe-haven assets.
Credit Suisse Bank is facing a serious financial crisis, which has caused the Swiss central bank and the Swiss government to act as intermediaries in pushing UBS to reach an agreement to buy Credit Suisse for 3 billion Swiss francs ($3.23 billion) as of Sunday, March 19.
The gold market was also boosted by the weakening of the dollar. The greenback, which measures the dollar against a basket of six major currencies, was down 0.42% at 103.2828 overnight. The weaker dollar makes gold contracts, priced in dollars, cheaper for investors holding other currencies.
Investors are now awaiting the Federal Reserve’s monetary policy meeting on March 21-22. Goldman Sachs predicted that the Fed will not raise interest rates at this meeting due to the crisis in the banking system.