Gold futures surged to the highest level for a most-active contract in roughly a year on Monday, briefly breaking above $2,000 per ounce as the takeover of Credit Suisse by UBS stoked fears about more banking-sector fallout.
Price action
-
Gold for April delivery
GC00,
+0.53% GCJ23,
+0.53%
gained $11.40, or 0.6%, to $1,985.20 per ounce on Comex, -
May silver
SI00,
+0.57% SIK23,
+0.57%
climbed by 9 cents, or 0.4%, to $22.54 per ounce after briefly touching its highest level in six weeks. -
July platinum
PLN23,
+1.16%
rose by $6.20, or 0.6%, to $985 per ounce while June palladium
PAM23,
+0.71%
gained $15.90, or 1.1%, to $1,402 per ounce. -
Copper for May delivery
HGK23,
+1.14%
gained 4 cents, or 1%, to $3.93 per pound.
Market drivers
Concern that more banks may fail has helped to push gold prices sharply higher in recent weeks, precious-metals analysts said. The yellow metal has also benefited from a stronger U.S. dollar and lower Treasury yields.
See: Here’s why UBS’s deal to buy Credit Suisse matters to U.S. investors
It’s likely these factors will continue to act as a tailwind for gold and silver so long as investors are afraid that more bank failures may follow.
“Gold will remain the asset of choice until investors have more confidence that no other financial institutions are at risk,” said Rupert Rowling, a market analyst at Kinesis Money.
The ICE U.S. Dollar Index
DXY,
a gauge of the buck’s strength against a basket of rivals, fell by 0.2% to 103.5, according to FactSet data. The yield on the 10-year Treasury note
TMUBMUSD10Y,
has declined by 2.7 basis points to 3.363%.
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