On Friday (March 24), gold futures closed lower after failing to hold above the key $2,000 an ounce level, with the appreciation of the dollar weighing down the price of gold. However, gold futures closed up for the fourth week in a row as investors bought gold as a safe-haven asset amid concerns about a banking crisis that has spread to Germany’s Deutsche Bank.
Gold futures were down $12.10, or 0.6%, at $1,983.80/ounce. However, gold futures were up 0.5% for the week. Meanwhile, silver futures rose 8 cents, or 0.4%, to close at $23.339/ounce, while platinum futures were down $9, or 0.9%, at $983.90/ounce, and palladium futures were down $18.40, or 1.3%, at $1,414.40/ounce.
Gold futures fluctuated throughout the day, closing lower after rebounding in the first period. The drop was attributed to investors selling gold as a safe-haven asset, as concerns about the banking crisis eased after Mr. Olaf Scholz, Chancellor of Germany, and analysts expressed confidence about Deutsche Bank’s financial position.
On Friday, Mr. Scholz said Deutsche Bank has gone through a restructuring and modernized its business model, making it a bank that can generate huge profits. He added that investors should not speculate about the future of the bank.
Several analysts also reassured investors that Deutsche Bank will not become the next domino after Credit Suisse, with profits expected to reach 5 billion euros ($5.4 billion) in 2022, which is up 159% compared to 2021 and can make profits for 10 consecutive quarters.
Despite these reassurances, Deutsche Bank caught the attention of investors around the world on Friday. The bank’s share prices plummeted in both Europe and the United States after Credit Default Swap (CDS), a Deutsche Bank credit default hedge, hit its highest level in four years.
Additionally, the gold contract was negatively affected by the appreciation of the dollar, with the dollar index, which measures the greenback against a basket of six major currencies, up 0.58 percent to 103.1123 on Friday. This strength of the dollar has made gold contracts, priced in dollars, more expensive for investors holding other currencies.
The Spot Market is Closed
Saturday, March 25, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 04.00 | 1,978.30 1,979.30 | -15.20 -0.76% | 1,975.00 2,004.30 |
| Silver 04.00 | 23.20 23.31 | +0.12 +0.50% | 23.00 23.67 |
| Platinum 04.00 | 983.00 993.00 | -2.00 -0.20% | 955.00 998.00 |
| Palladium 04.00 | 1,357.00 1,507.00 | -11.00 -0.80% | 1,331.00 1,530.00 |
| Rhodium 04.00 | 7,300.00 9,300.00 | 0.00 0.00% | 7,300.00 9,300.00 |