Gold prices ease as bank angst recedes
Shafaq News / Gold prices ticked lower on Thursday as easing concerns about the global banking system fed risk appetite and curbed some safe-haven bullion bids.
Spot gold was down 0.1% at $1,963.14 per ounce, as of 0550 GMT, falling for a second session. U.S. gold futures fell 0.2% to $1,981.00.
The dollar index was a tad higher, making bullion less affordable for buyers holding other currencies, while Asia's stock markets held recent gains.
"In the short term, profit-taking as well as reduced fears of further contagion amongst banks should see the gold price continue to decline back towards $1,920/oz," said Michael Langford, director at corporate advisory firm AirGuide.
Gold rose above the $2,000 mark after the sudden collapse of two U.S. lenders earlier this month, but has since ceded gains as authorities stepped in with rescue measures, including UBS' takeover of ailing Credit Suisse and First Citizens BancShares' deal to buy failed Silicon Valley Bank.
However, the metal "held up relatively well against the headwinds", analysts at ANZ said in a note.
"Gold continues to see strong inflows in ETFs. Volumes in SPDR Gold Shares, the largest gold-backed ETF, have surged to their highest level since October," they said.
Market participants now await Friday's U.S. Personal Consumption Expenditures data, the Federal Reserve's preferred inflation measure, for further monetary policy clues.
The Fed will make its interest rate decisions from here on a meeting-to-meeting basis and will take financial conditions into account in that judgment alongside other factors, Fed Vice Chair for Supervision Michael Barr said on Wednesday.
The opportunity cost of holding non-yielding gold rises when interest rates are increased to bring down inflation.
Markets see a 43.9% chance of the Fed raising interest rates by 25 basis points in May, according to the CME FedWatch tool.
Spot silver rose 0.5% to $23.47 per ounce, platinum was up 0.3% to $970.09 and palladium climbed 0.5% to $1,447.21.
(Reuters)
