Due to the recent banking crises in the US and Europe, gold prices have exceeded $2,000 per ounce for the first time in over a year.
The surge in the price of bullion, which experienced its largest increase since the pandemic’s early days in March 2020, is due to a return to safe-haven buying as concerns grow over the collapse of several regional American lenders and the instability of Credit Suisse.
Although the announcement of an emergency, government-brokered deal for UBS to purchase the Swiss lender caused some retracement in gold’s gains early on, the precious metal resumed its ascent later in the session.
Currently, spot gold has risen by 0.6% to $2,000.37 an ounce in Singapore, marking the first time it has traded above the psychologically important $2,000 threshold since March 10, 2022.
