Gold prices have been on the rise, increasing 9% for two consecutive quarters. This unprecedented win is due to investors seeking a safe haven amid memories of the recent U.S. banking crisis. Despite the rebound of risk assets, the precious metal has remained in high demand.
As the last trading day for March approached, gold for June delivery on New York’s Comex settled at $1,986.20 per ounce, down $11.50 or 0.6%. However, the benchmark U.S. gold futures contract was also down for the week, dipping $15.50, or 0.8%, compared to the previous Friday’s settlement of $2,001.70.
Gold has long been considered a safe haven asset, and recent market turmoil has only strengthened its appeal. The ongoing COVID-19 pandemic, geopolitical tensions, and economic uncertainty have all contributed to investors seeking the safety and stability that gold provides.
Despite the recent rebound of risk assets, such as stocks and cryptocurrencies, gold remains in demand. This is due in part to the fact that the memory of the recent U.S. banking crisis is still fresh in investors’ minds, leading them to seek out safe havens for their investments.
In addition to its appeal as a safe haven asset, gold has other qualities that make it an attractive investment option. It is a finite resource, meaning that its supply is limited, and it has a long history of being used as a store of value. This makes it a reliable option for investors looking to diversify their portfolios and protect their wealth.
Looking ahead, it is uncertain how long the demand for gold will continue to grow. While the memory of the recent banking crisis is still fresh, the ongoing rollout of COVID-19 vaccines and potential economic recovery could shift investors’ priorities. However, for now, gold remains a valuable asset for those looking to weather market volatility and economic uncertainty.