Gold surge on lower dollar due to banking crisis fears ease

Gold rose today, Tuesday, with the decline of the dollar, but the demand for the metal, which is considered a safe haven, was affected by the improvement in risk appetite, after efforts by regulators to calm concerns about the global banking system.

According to Reuters, gold rose in spot transactions by 0.2 percent, to $ 1959.63 an ounce, by 0557 GMT. US gold futures rose 0.3 percent to $1,960.30.

“It appears that the US dollar is stabilizing,” said Clifford Bennett, chief economist at ACY Securities. This would lead to new purchases in the (gold) market.”

The dollar index fell 0.2 percent, making the metal less expensive for buyers of other currencies.

Gold had lost more than 1 percent on Monday, as investors reduced their dealings in safe-haven assets and turned to riskier assets after First Citizens Bankers announced the acquisition of deposits and loans of the collapsed Silicon Valley bank.

As for other precious metals, silver fell 0.2 percent to $23.04 an ounce, platinum rose 0.2 percent to $972.94, and palladium increased 0.1 percent to $1409.70.