Shreemetalprices: Gold Prices Today hits record High as banking industry concerns & Fed meeting this week


Gold prices hits all time highest levels on Monday, because when markets assessed the effect of the Fed and other major central banks’ emergency liquidity measures amid growing fears of a banking collapse.

In order to stop any possible contagion from the failure of multiple lenders during the previous 2 weeks. The European Central Bank (ECB), the Federal Reserve (FED), & several other significant central banks announced the new steps to bolster liquidity for the banking system.

Once struggling bank Credit Suisse Group AG was acquired by Swiss rival Union Bank of Switzerland Group AG in a deal aided by regulators, the action was taken shortly after.

Demand for safe haven assets such as gold has increased recently due to financial sector turmoil that threatens to spread to the rest of the economy. Pushing the yellow metal almost over 2,000 dollar per ounce.

A year of monetary tightening by the bank to fight inflation is also undone by the Federal Reserve’s expanded liquidity measures, which are anticipated to increase gold demand.

Gold Prices Remain Elevated, Fed Policy meeting this week

Although gold futures increased 0.7 percent to 1,987.40 dollar per ounce by 17:00 GMT, spot gold held steady around 1,983.50 dollar per ounce (17:00 GMT). Last week, both assets climbed by almost 6 percent due to rising demand for safe havens.

Fears of a United States banking collapse stimulate heavy flows into gold, particular after the collapse of SVB.
Also, as the Fed tries to prevent the economy from being further harm by increasing interest rates. Investors started pricing in a lower hawkish Fed in the upcoming months.

This week’s attention is entirely focus on the outcomes of the 2-day Federal Reserve meeting, which ends on Wednesday. The bank is anticipate to increase rates by a very modest 25 bps. On Monday, in expectation of the meeting, the USdollar stood unchanged.

On Monday, bids were also see for other precious metals. Platinum increased 1.31percent to 985.40 dollar per ounce while silver futures increased by 0.44 percent to 22.56 dollar per ounce.

Due to the possibility that the new liquidity steps may lead to a less severe economic slump this year. Copper prices among industrial metals rose in response to them.

Futures on copper increased by 0.9percent to 3.9345 dollar per pound.

Yet the red metal was still suffering significant losses from the previous week, raising worries. That the demand for the metal would wane as a result of adverse worldwide economic conditions.