Prices Of Gold Rise To Usd 1,990 An Ounce Over Concerns About The Banking Sector

Global gold prices rose to USD 1,990 per ounce last week, marking the highest level since April 2022.

In a report issued by local Dar Al-Sabaek, it was noted that investors are seeking refuge in the precious metal in the wake of major disruptions suffered by a number of American and European banks.

Some medium-sized banks in America and Europe declared bankruptcy while others were rescued by larger banks due to their fragility. This financial instability had investors scrambling towards gold prompting the large leap from USD 1,860 to USD 1,990 with estimations of it reaching USD 2,000 should these financial risks continue to mount.

The markets are awaiting Wednesday's American Federal Reserve meeting (the US central bank). Investors' concerns began to subside after 11 banks announced pumping USD 30 billion into American First Republic Bank and Swiss bank Credit Suisse announced borrowing USD 54 billion from the Swiss National Bank to boost liquidity and avoid closure.

However, concerns regarding the sturdiness of the banking system picked up pace in light of Silicon Valley Bank's parent company filing for bankruptcy protection. Dar Al-Sabaek stated that a 24-carat gram of gold on Friday reached KD 19.50, while a 22-carat gram reached KD 17.80, and the price of silver was 268 per kilogram.

 

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