March 29, 2023 (MLN): Gold prices pulled back in the Asia trading session on Wednesday as investors moved back into riskier assets wagering that risks from the global banking crisis have been contained for now, as reported by Reuters.
At the time of writing, spot gold is being traded at $1,966.20 an ounce down by 0.36%. U.S. gold futures drops 0.3% to $1,967.50.
This is coupled with a 0.2% increase in the U.S. dollar, which makes bullion more costly internationally.
Ross Norman, an independent analyst stated that gold fell because "markets are going risk-on as fears of contagion within the banking sector abates."
According to the data of the CME Fed Watch tool, Investors anticipate the U.S. Federal Reserve’s next decision on interest rates, with now markets pricing in a 40.1% probability of a 25 basis point increase in May.
Investor optimism about the technology and banking sectors lifted European stocks on Wednesday. Alibaba’s break-up plans boosted Asian markets, while UBS appointed Sergio Ermotti as its new chief executive. The STOXX 600 index gained 0.36% to 1,966.20 points.
Metals firm MKS PAMP stated in a note, "The Fed will have to choose between higher inflation, a harder landing, or financial instability – all outcomes will keep safe havens in play, likely prompting gold to retest and pierce all-time highs this year.”
Among other precious metals, Silver and platinum also followed gold’s downward trend on Wednesday, as investors favored riskier assets over safe-havens.
The value of silver dropped by 0.2% currently trading at $23.27 an ounce. Platinum also fell by 0.3% to $959.5 an ounce. However, palladium increased by 0.4% for the second consecutive day and reached $1,424.64 an ounce.
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Posted on:2023-03-29T16:03:15+05:00
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