Gold prices mark a jump to one-year high amid worries over banking sector
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New Delhi: In the midst of growing worries over crisis in global banking sector, gold prices are again climbing up, showcasing the more robust side of the yellow metal.
Erasing previous losses, gold prices on Monday jumped one percent to perch on their highest since March last year, according to Reuters.
The change in market trend ensues after the Silicon Valley Bank collapsed earlier this month, sending jitters across the banking sector.
Worries over the health of global banking sector looms even as ‘efforts by Swiss lender UBS to buy peer Credit Suisse to stabilise broader financial markets’, as per the report.
Suggesting an upward trend, Spot gold was up 1% at $2,007.30 per ounce after going down 1 percent earlier and U.S gold futures jumped 2% to $2,012.50.
Prices of gold reported a sudden spike by 10 per cent or hitting $180 after Silicon Valley Bank collapsed.
Gold becomes more attractive as ever during the volatile economic scenario as the metal is being considered a ‘hedge against economic uncertainties’.
Even as people tend to shift more to gold, chances are that prices of the yellow metal could go up further.
Even it is zero-yield, gold is an attractive bet in a low-interest rate situation.
Despite surprise jump of gold prices, Spot silver remained unchanged at $22.59 per ounce while platinum went down to 970.53.