Column: Gold bulls hope short-term bank contagion sparks longer-term rally – by Clyde Russell (Reuters – March 14, 2023)

https://www.reuters.com/

LAUNCESTON, Australia, March 14 (Reuters) – The gold bulls are running again, hoping that a short-term boost from the collapse of Silicon Valley Bank can be translated into a longer-term rally for the precious metal.

The spot price of gold rallied strongly on Monday after U.S. regulators enacted a series of emergency measures after the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) in New York. Gold ended at $1,913.24 an ounce on Monday, having gained 4.5% since its close on March 9, and closing in on the high so far in 2023 of $1,959.60 on Feb. 2.

The rally was driven by investors buying into gold Exchange Traded Funds (ETFs), with the largest such vehicle, the SPDR Gold Trust reporting that its holdings rose 1.31% on Monday to 913.27 tonnes from 901.42 tonnes on March 10.

This is equivalent to 29.03 million ounces, but it’s worth noting that the SPDR holdings have been in a declining trend since April last year, when they peaked at 35.58 million ounces.

For the rest of this article: https://www.reuters.com/markets/asia/gold-bulls-hope-short-term-bank-contagion-sparks-longer-term-rally-2023-03-14/