Gold prices rise as global banking crisis spurs safe-haven demand
Shares of Credit Suisse slumped by as much as 30% on Wednesday after the lender's largest shareholder said it could not provide further support, prompting the chief executive officer to make new assurances on its financial strength.
By Reuters | Updated:
Agencies
Gold prices edged higher on Thursday as troubles at Swiss lender Credit Suisse renewed fears of a banking crisis worldwide and steered traders towards the safe-haven metal.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,919.86 per ounce, as of 0050 GMT, after rising more than 1% on Wednesday. U.S. gold futures fell 0.2% to $1,927.80.
* Shares of Credit Suisse slumped by as much as 30% on Wednesday after the lender's largest shareholder said it could not provide further support, prompting the chief executive officer to make new assurances on its financial strength.
* Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank.
* Data on Wednesday showed U.S. retail sales fell 0.4% in February as purchases of motor vehicles and other goods slumped.
* Separate data showed U.S. producer prices unexpectedly fell 0.1% in February.
* Markets now see a 51.1% chance of rates being held at current levels at the U.S. Federal Reserve's March meeting.
* Gold is considered a hedge against economic uncertainties, and tends to gain on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
* The dollar index eased 0.1%, making bullion less expensive for buyers holding other currencies. U.S. benchmark 10-year Treasury yields were lower.
* Spot silver rose 0.2% to $21.84 per ounce, platinum was 0.1% higher at $962.96 and palladium gained 1.4% at $1,467.90.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,919.86 per ounce, as of 0050 GMT, after rising more than 1% on Wednesday. U.S. gold futures fell 0.2% to $1,927.80.
* Shares of Credit Suisse slumped by as much as 30% on Wednesday after the lender's largest shareholder said it could not provide further support, prompting the chief executive officer to make new assurances on its financial strength.
* Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank.
* Data on Wednesday showed U.S. retail sales fell 0.4% in February as purchases of motor vehicles and other goods slumped.
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* Separate data showed U.S. producer prices unexpectedly fell 0.1% in February.
* Markets now see a 51.1% chance of rates being held at current levels at the U.S. Federal Reserve's March meeting.
* Gold is considered a hedge against economic uncertainties, and tends to gain on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
* The dollar index eased 0.1%, making bullion less expensive for buyers holding other currencies. U.S. benchmark 10-year Treasury yields were lower.
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* Spot silver rose 0.2% to $21.84 per ounce, platinum was 0.1% higher at $962.96 and palladium gained 1.4% at $1,467.90.
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