Photo Jingming-pan/Unsplash
Photo Jingming-pan/Unsplash

US banking crisis triggered rally in gold

Gold edged lower in Asia after surging more than 5% over the three previous sessions as the collapse of a major US bank spurred a flight to haven assets.

The failure of Silicon Valley Bank, combined with a sharp drop in Treasury yields and dollar weakness, has been a boon for bullion. Its 2.4% jump on Monday was the largest since November. The greenback rose for the first time in four sessions on Tuesday, weighing on the precious metal.

As well as the banking crisis, gold is drawing support from fresh expectations the Federal Reserve will be forced to temper aggressive monetary tightening due to risks emanating from SVB. US 10-year bond yields have fallen more than 40 basis points since Wednesday, a positive for non-interest bearing bullion.

Drivers for gold include "concerns about potential systemic risk" as potential deflationary and recessionary risks mount, Citigroupanalysts including Aakash Doshi said in a note.

The possibility of more trouble for the global economy also piled pressure on industrial metals, which joined the flight from risk assets. Zinc is heading for its lowest close since November, while copper also retreated.

Traders will be closely watching US inflation data due later Tuesday, with the market now expecting the banking-sector turmoil will prompt the Fed to implement a quarter-point hike at its March 21-22 policy meeting, rather than return to a half-point increase.

While the CPI data "remains critical, we view recent market events as more structurally supportive for gold prices," Citigroup’s Doshi said in the note.

Spot gold dropped 0.6% to $1,902.74 an ounce as of 1:40 p.m. in Shanghai and the Bloomberg Dollar Spot Index rose 0.2%. Copper fell 1.2% and zinc was down 0.5%.

Silver fell after surging 6.2% on Monday, while platinum and palladium also dropped.-Fin24

Kommentar

Allgemeine Zeitung 2024-06-23

Zu diesem Artikel wurden keine Kommentare hinterlassen

Bitte melden Sie sich an, um einen Kommentar zu hinterlassen

Katima Mulilo: 10° | 28° Rundu: 11° | 27° Eenhana: 12° | 29° Oshakati: 12° | 29° Ruacana: 12° | 29° Tsumeb: 13° | 25° Otjiwarongo: 10° | 24° Omaruru: 12° | 26° Windhoek: 9° | 23° Gobabis: 9° | 23° Henties Bay: 16° | 32° Wind speed: 39km/h, Wind direction: E, Low tide: 10:10, High tide: 04:07, Low Tide: 22:33, High tide: 16:42 Swakopmund: 17° | 24° Wind speed: 23km/h, Wind direction: S, Low tide: 10:08, High tide: 04:05, Low Tide: 22:31, High tide: 16:40 Walvis Bay: 20° | 31° Wind speed: 26km/h, Wind direction: SE, Low tide: 10:08, High tide: 04:04, Low Tide: 22:31, High tide: 16:39 Rehoboth: 9° | 24° Mariental: 11° | 25° Keetmanshoop: 13° | 25° Aranos: 11° | 25° Lüderitz: 17° | 27° Ariamsvlei: 13° | 26° Oranjemund: 13° | 23° Luanda: 20° | 22° Gaborone: 9° | 22° Lubumbashi: 11° | 27° Mbabane: 11° | 17° Maseru: 6° | 18° Antananarivo: 8° | 19° Lilongwe: 13° | 26° Maputo: 18° | 24° Windhoek: 9° | 23° Cape Town: 13° | 20° Durban: 15° | 22° Johannesburg: 9° | 18° Dar es Salaam: 21° | 30° Lusaka: 13° | 23° Harare: 11° | 23° Currency: GBP to NAD 22.68 | EUR to NAD 19.2 | CNY to NAD 2.47 | USD to NAD 17.96 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.37 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.69 | ZWL to NAD 0.04 | BRL to NAD 3.28 | RUB to NAD 0.2 | INR to NAD 0.21 | USD to DZD 134.42 | USD to AOA 852.48 | USD to BWP 13.51 | USD to EGP 47.65 | USD to KES 127.73 | USD to NGN 1482.3 | USD to ZAR 17.96 | USD to ZMW 25.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1783.38 Down -0.16% | Casablanca Stock Exchange (CSE) MASI 13140.91 Up +0.02% | Egyptian Exchange (EGX) 30 Index 26417.6 Up +1.09% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 321.88/OZ DOWN -0.0165 | Copper US$ 4.42/lb DOWN -0.0251 | Zinc US$ 2 875.00/T UP 0.09% | Brent Crude Oil US$ 85.10/BBP DOWN -0.0072 | Platinum US$ 990.14/OZ UP +0.92% Sport results: Weather: Katima Mulilo: 10° | 28° Rundu: 11° | 27° Eenhana: 12° | 29° Oshakati: 12° | 29° Ruacana: 12° | 29° Tsumeb: 13° | 25° Otjiwarongo: 10° | 24° Omaruru: 12° | 26° Windhoek: 9° | 23° Gobabis: 9° | 23° Henties Bay: 16° | 32° Wind speed: 39km/h, Wind direction: E, Low tide: 10:10, High tide: 04:07, Low Tide: 22:33, High tide: 16:42 Swakopmund: 17° | 24° Wind speed: 23km/h, Wind direction: S, Low tide: 10:08, High tide: 04:05, Low Tide: 22:31, High tide: 16:40 Walvis Bay: 20° | 31° Wind speed: 26km/h, Wind direction: SE, Low tide: 10:08, High tide: 04:04, Low Tide: 22:31, High tide: 16:39 Rehoboth: 9° | 24° Mariental: 11° | 25° Keetmanshoop: 13° | 25° Aranos: 11° | 25° Lüderitz: 17° | 27° Ariamsvlei: 13° | 26° Oranjemund: 13° | 23° Luanda: 20° | 22° Gaborone: 9° | 22° Lubumbashi: 11° | 27° Mbabane: 11° | 17° Maseru: 6° | 18° Antananarivo: 8° | 19° Lilongwe: 13° | 26° Maputo: 18° | 24° Windhoek: 9° | 23° Cape Town: 13° | 20° Durban: 15° | 22° Johannesburg: 9° | 18° Dar es Salaam: 21° | 30° Lusaka: 13° | 23° Harare: 11° | 23° Economic Indicators: Currency: GBP to NAD 22.68 | EUR to NAD 19.2 | CNY to NAD 2.47 | USD to NAD 17.96 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.37 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.69 | ZWL to NAD 0.04 | BRL to NAD 3.28 | RUB to NAD 0.2 | INR to NAD 0.21 | USD to DZD 134.42 | USD to AOA 852.48 | USD to BWP 13.51 | USD to EGP 47.65 | USD to KES 127.73 | USD to NGN 1482.3 | USD to ZAR 17.96 | USD to ZMW 25.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1783.38 Down -0.16% | Casablanca Stock Exchange (CSE) MASI 13140.91 Up +0.02% | Egyptian Exchange (EGX) 30 Index 26417.6 Up +1.09% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 321.88/OZ DOWN -0.0165 | Copper US$ 4.42/lb DOWN -0.0251 | Zinc US$ 2 875.00/T UP 0.09% | Brent Crude Oil US$ 85.10/BBP DOWN -0.0072 | Platinum US$ 990.14/OZ UP +0.92%