XAU/USD: Gold Slips as Bank Contagion Worries Subside

The precious metal drifted lower from a 12-month high above $2,000 as bank sentiment improved.

• Gold hit a one-year high of $2,010 as bank fears rattled investor confidence in risk assets and pushed them into the perceived safety of the bullion. Now that those worries started to ease a bit, the precious metal moved back under the $2,000 threshold, snapping a three-day winning streak.
• Prices per troy ounce last dipped about 2% from their peak during Monday’s volatility, and today traded around the $1,975 mark. Over the past 10 trading days, gold added roughly 10% to its valuation to flash prices last seen in March 2022, hovering below the all-time high of $2,075 per ounce.
• This recent $170 rally was largely boosted by the faith-shattering banking crisis which led to the collapse of four major banks, including SVB and Credit Suisse. While more are threatened, central banks are putting efforts to shore up confidence in the system, and that’s what eased gold prices today.