(Kitco News) The gold market rallied as banking sector turbulence intensified despite Federal Reserve Chair Jerome Powell’s attempt to calm the markets. Comex gold hit new record highs of $2,085.40 overnight, with June Comex gold futures last trading at $2,062.70, up 1.26% on the day.
Banking fears escalated Thursday on contagion risk within the U.S. regional bank space. PacWest Bancorp, a regional bank, was reportedly looking at various strategic options, including a sale. Following the news, the bank’s shares tumbled more than 41% Thursday.
The stock of Western Alliance also plunged 39% after FT reported that it was considering a potential sale of all or part of its business. The Arizona-based bank denied the report, describing it as “categorically false in all respects” and noting that “Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options.”
Other regional bank shares saw a steep selloff as well, with the SPDR S&P Regional Bank ETF down nearly 9% on the day.
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