Prices Of Gold Rises As SVB Fallout Prompts A Rush To Haven Assets

Following a 2% increase on Friday, investors continued to seek safe havens in Asia as gold prices rose.

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The fall of Silicon Valley Bank, the second-largest failure of an American institution in history, has raised concerns about possible systemic implications and forced authorities to take action on Sunday to preserve depositors' cash.

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As a result of the ambiguity, gold has increased more than 3% since Wednesday's closing as worries over SVB increased, reaching a one-month high. As the Federal Reserve considers quickening the pace of interest-rate hikes, US statistics released late last week showed a mixed image of the economy.

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The central bank's next action may be heavily influenced by the inflation data that is due on Tuesday, together with the potential effects of the SVB scandal. The consequent financial pressures on US regional banks may be decreasing the likelihood that the Fed will act aggressively later this month.

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As of 9:25 a.m., spot gold increased 0.4% to $1,876.25 per ounce. after rising as much as 1.1% earlier to the highest level since February 9 in Singapore. After a 0.4% decrease on Friday, the Bloomberg Dollar Spot Index dropped 0.4% on Monday. While platinum remained constant, silver and palladium advanced.