Gold prices fell at the beginning of the trading week for the second session in a row, amid a gradual decline in concerns of the financial markets as central banks take measures to avoid another banking crisis, according to the Gold Bullion report.
Prices of gold declined during Monday’s trading by about 1% to $1958.96 an ounce. This comes after witnessing clear fluctuation last week that ended with a negative closing, to end a series of three consecutive weeks of gains in gold markets.
The current downward movements in gold markets, which began since the end of last week, are classified as corrections for profit-taking, after the record levels that gold recorded during the past week, and its recording of the highest level since a year at $2009.69 an ounce.
“On the other hand, we are witnessing a US dollar stability in the levels of the during today’s session close to last week’s close, according to the dollar index, which measures the performance of the federal currency against a basket of 6 major currencies, after four consecutive weeks of decline in dollar levels. The current calm in financial markets comes after the First Citizens Bank announced that it will obtain all deposits and loans of the Silicon Valley Bank from the Federal Deposit Insurance Corporation, which calmed the markets somewhat to reflect negatively on performance of gold.
The decision to obtain deposits and loans of the collapsing US bank Silicon Valley comes after a series of measures taken by the authorities to end the banking sector crisis, whether in the United States or in Europe, which witnessed the acquisition of the troubled Credit Suisse Bank by UBS, according to the report.
The 10-year US bond yield increased by 1.1% to 3.427%, while the yield on 2-year US bonds hiked by 2.43% to 3.9023%, up from its lowest level since mid-September of last year.