Gold Price News: Gold Holds Near $2,000 Even On Good Day for Equities

The strength of underlying support for gold is clearly on show today with the price of the precious metal holding near $2,000 an ounce even on a more positive day for equities markets. 

Market confidence remains very fragile as investors try to assess the true health of the banking sector following last month’s collapse of three US banks and UBS’ forced buyout of Credit Suisse. And while the initial contagion was contained, renewed concerns over the long-term future of First Republic Bank have kept gold, with its lack of counterparty risk, in strong demand. 

The latest round of earnings sees Meta reporting later today with Amazon and Barclays among those releasing their figures tomorrow and these will help investors determine the current state of the global economy. The numbers from the companies who have already reported point to an economy in a better state than perhaps feared but the fact that gold has still held close to $2,000 an ounce illustrates how much good news is required to bolster market confidence after the big hit it took last month.

As such, even in an environment in which further interest rate hikes are likely, both by the Federal Reserve as well as European central banks, gold looks set to continue trading at these elevated levels for a while yet.

Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. 

As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.