Gold gets a safe-haven bid as banks shake confidence

Gold gets a safe-haven bid as banks shake confidence

From wisdomtree.eu

Financial markets were sent into a tailspin on the news of Silicon Valley Bank (SVB) imploding. Despite the decisive moves by the Federal Deposit Insurance Corporation (FDIC)1 and the Federal Reserve (Fed)2, market confidence has been shaken and we have witnessed a flight to safety. Demand for government bonds have risen sharply, driving the yields on 10-year US Treasuries down from 4.0% on 9/3/2023 to 3.4% (16/03/2023). In tandem, gold prices have risen 6.6% in the past week (9/3/2023 to 16/03/2023). The speed of gold’s moves indicates that the flight to safety has not been obstructed by any broad-based liquidity ... (full story)

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