- Gold prices have jumped 8% since the collapse of Silicon Valley Bank.
- Investors have flocked to gold as a safe haven with banking turmoil weighing on other assets.
- The de-dollarization movement has also helped to fuel gold's recent rally, according to a report by the World Gold Council WGC) published last week.
- The WGC found that central banks bought a record 228 tonnes of gold in the first quarter, with countries like Brazil, China, and Russia all trying to reduce their reliance on the greenback.
Gold prices are closing in on an all-time high with ongoing banking turmoil and the de-dollarization movement fueling demand for the precious metal.
Gold prices have jumped 8% since Silicon Valley Bank collapsed on March 10, according to Refinitiv, trading at around $2,028 per ounce at last check.
Investors tend to see the yellow metal as a so-called "safe haven" that they can rely on for steady returns in times of heightened volatility – so it's benefited from investors' fears about the health of US regional banks.
Beverly Hills-based PacWest said it would explore a sale Thursday, the latest setback for regional lenders.
Gold's peak for the year came that day, with its price reaching $2,051 per ounce – just 21 cents below the record level of $2,072 per ounce, per Refinitiv.
The de-dollarization movement has also helped to fuel gold's recent rally, according to a report by the World Gold Council (WGC) published last week.
The WGC found that central banks bought a record 228 tonnes of gold in the first quarter, with countries like Brazil, China, and Russia all trying to reduce their reliance on the greenback.
Story by George Glover 5-9-23 Redacted shorter to keep to important points and bullet points added by HGG. https://markets.businessinsider.com/news/commodities/gold-all-time-high-safe-haven-banking-crisis-de-dollarization-2023-5
