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| Gold Reaches Over $2,000 Following Credit Suisse Buyout Amid Global Bank Fears |
Gold prices surpassed the $2,000 per ounce mark on Monday, driven by haven demand as investors remained worried about global bank fears, despite the recent buyout of Credit Suisse. The precious metal, widely considered as a safe store of value during times of uncertainty, rose as high as $2,009.73 in early morning London deals - the highest level since Russia launched its invasion of Ukraine more than a year ago.
Although gold later eased to $1,995, it still marked a 0.3% gain from late Friday, highlighting the increased demand for the metal as a result of the fallout from the banking sector. The value of gold has climbed by nearly 9% since the collapse of US regional lender Silicon Valley Bank 10 days ago.
Rupert Rowling, an analyst at Kinesis, said that gold has received a "flood of money" due to its safe haven qualities as continued concerns over the banking sector persist. Despite the announcement that Switzerland's largest bank UBS will acquire Credit Suisse for $3.25 billion, European bank shares sharply declined on Monday.
As the pandemic continues to cause global economic uncertainty, many investors are turning to the safe haven qualities of gold to protect their assets against potential market downturns. It remains to be seen whether this trend will continue or if the banking sector will recover from its recent turmoil.
