Gold surges to 5-week high as banking jitters resurface

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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


    gained $17, or 0.9%, to $1,928 per ounce on Comex.

  • Silver futures for May


    gained 35 cents, or 1.6%, to $22.40 per ounce.

  • Palladium for June

    fell by $63, or 4.2%, to $1,454 per ounce, while platinum for April

    declined by $32, or 3.2%, to $965 per ounce.

  • Copper for May delivery

    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

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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