Gold rose and European stocks recovered as fears of a banking crisis receded | Economy news

28/3/2023–|Last updated: 3/28/202311:13 AM (Makkah)

Gold rose today, Tuesday, with the decline of the dollar, and European stocks rose as investors revived hopes that the banking crisis will be contained.

The appetite for gold, which is considered a safe haven, was affected by the improvement in risk appetite, following efforts by regulators to calm concerns regarding the global banking system.

Spot gold rose 0.2% to $1959.63 an ounce by 05:57 GMT, and US gold futures rose 0.3% to $1960.30.

“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%, making the metal less expensive for buyers of other currencies.

And gold had lost more than 1% yesterday, Monday, as investors reduced their dealings in safe-haven assets and turned to high-risk assets following First Citizens Bankers announced the acquisition of deposits and loans of the American Silicon Valley Bank, which collapsed this month in the largest collapse of an American bank since the financial crisis of 2018. 2008.

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

European stocks rise

European stocks rose today, Tuesday, with the recovery of investors’ hopes to contain the banking crisis following the acquisition of Silicon Valley deposits and loans.

The European STOXX 600 index rose 0.7% by 07:08 GMT, continuing the rise for the second day in a row, following last week’s losses in bank shares that resulted from the collapse of Credit Suisse and two medium-sized US banks.

And the European banking sector index increased 1.6%, following rising 1.4% on Monday.

Shares of Swiss bank UBS jumped 2.4% following its CEO, Ralf Hammers, said in an internal note that the bank sees its acquisition of Credit Suisse, which was carried out under the supervision of Swiss authorities, as an opportunity for growth.

Credit Suisse shares rose 3.1%.