Posted 10th Mart 2023

Gold Price News: Haven-Seeking Investors Help Push Gold Above $1,830

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Gold has perked back up above $1,830 an ounce as investors seek out safe-haven assets amid concerns about the health of the US banking sector following the collapse of Silvergate and significant losses reported by Silicon Valley Bank.

The issues with these two banks, which are focused on the crypto and start-up sectors, have illustrated the added risks associated with these newer investment areas and reminded investors of the age-old qualities of gold that have endured through centuries of stock market wobbles. 

This haven demand for gold has proved timely as the precious metal had been on a downward trend following the hawkish outlook from a range of Federal Reserve officials that pointed to interest rates climbing higher than previously expected. 

Now gold finds itself supported by haven demand, on top of central bank buying that was already a significant bedrock, and has been able to recover some of the losses endured in February. How much higher gold can climb will be determined by how contained these banking concerns are kept and if other financial institutions become impacted.

Capping gold’s potential gains is the Fed’s latest interest rate decision the week after next where an increase above the 25 basis point currently forecasted would stop any recovery for gold in its tracks.

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