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Gold prices advanced on Wednesday to a fresh five-week high as banking-sector worries resurfaced with shares of Credit Suisse plunging, reigniting fears about the U.S. banking-sector contagion going global and pushing investors to anticipate a policy pivot from the Federal Reserve.
Price action
-
Gold futures for April delivery
GC00,
+1.02% GCJ23,
+1.02%
gained $17, or 0.9%, to $1,928 per ounce on Comex. -
Silver futures for May
SI00,
+1.50% SIK23,
+1.50%
gained 35 cents, or 1.6%, to $22.40 per ounce. -
Palladium for June
PAM23,
-3.47%
fell by $63, or 4.2%, to $1,454 per ounce, while platinum for April
PLJ23,
-3.34%
declined by $32, or 3.2%, to $965 per ounce. -
Copper for May delivery
HGK23,
-2.51%
fell by 13 cents, or 3.2%, to $3.88 per pound.
Market drivers
Investors shrugged off a spate of U.S. economic data released Wednesday, including a report on wholesale prices that showed they declined 0.1% during the month of February, as banking-sector fears took center stage once again.
“Gold and silver prices are sharply up in early U.S. trading Wednesday, with both metals scoring five-week highs, on keen safe-haven demand. Fears of a global banking/financial crisis are growing at mid-week,” said Jim Wyckoff, senior analyst at Kitco.com.
Traders also again adjusted their expectations for how aggressive the Federal Reserve might be in shifting to cutting interest-rates later this year, which helped to weigh on Treasury yields and the U.S. dollar, while boosting gold.
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