As Financial Concerns Subside, Gold Declines From A 6-Week High.

In response to news that several of the largest U.S. banks were putting together a deal for the struggling First Republic Bank as the Swiss National Bank provided liquidity to Credit Suisse, gold prices dropped from a six-week high on Thursday.

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Price movement

• According to Dow Jones Market Data, gold futures for April delivery (GC00 GCJ23) settled at $1,923 per ounce, down $8.30 or 0.4%.
• Silver futures for May SI00 SIK23 finished at $21.69 per ounce, down 19 cents or 0.9%.
• The price of platinum for July PLN23 decreased by $6.80, or 0.7%, to close at $977.10 per ounce, while the price of palladium for June PAM23 fell by $35.50, or 2.5%.
• To end at $3.87 per pound, copper contracts for May delivery contract HGK23 lost 2 cents, or 0.6%.

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Market Forces

With the bankruptcy of three American banks and a dramatic selloff in shares of Credit Suisse Group, concerns about the soundness of the U.S. and European banking systems have contributed to the recent rise in gold prices.

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However, the price of gold fell on Thursday as Credit Suisse used liquidity assistance provided by the Swiss National Bank and as news reports claimed a group of major financial institutions might help save ailing regional bank First Republic Bank.

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Gold experienced profit-taking as banking instability subsided following reports that JPMorgan, Morgan Stanley, and other major banks were investigating a possible merger with First Republic Bank, according to Craig Erlam, chief market analyst at OANDA.