The biggest banking crisis since the Great Financial Crisis of 2008 proves once again that gold is the ultimate safe haven asset.
The gold market rallied as prices posted their best week in three years amid the banking sector's decline. Analysts are not ruling out the possibility of testing the $2,000 an ounce level next week as markets await the Federal Reserve's monetary policy meeting scheduled for Wednesday.
Markets are coming to the conclusion that the Fed will go for another 25-bp rate hike and then possibly hold off for a while and see what happens. From a gold perspective, given the disruption in the banking system and the willingness of the U.S. Treasury Department to help, we may get conditions that will allow inflation to linger at a higher level. That's good for gold .
If things suddenly improve over the weekend, which is doubtful, gold is likely to see price weakness
The gold market rallied as prices posted their best week in three years amid the banking sector's decline. Analysts are not ruling out the possibility of testing the $2,000 an ounce level next week as markets await the Federal Reserve's monetary policy meeting scheduled for Wednesday.
Markets are coming to the conclusion that the Fed will go for another 25-bp rate hike and then possibly hold off for a while and see what happens. From a gold perspective, given the disruption in the banking system and the willingness of the U.S. Treasury Department to help, we may get conditions that will allow inflation to linger at a higher level. That's good for gold .
If things suddenly improve over the weekend, which is doubtful, gold is likely to see price weakness