The price of gold has risen above $2,000 U.S. an ounce for the first time in a year as investors pour money into the safe haven asset amid continued shocks to the global banking sector.
The price of gold climbed above the $2,000 U.S. threshold on news that Swiss banking giant UBS (UBS) is buying troubled rival Credit Suisse (CS) for more than $3 billion U.S.
Gold’s price has now increased nearly 7% in the last week, its biggest gain since that start of the pandemic, after several regional U.S. lenders collapsed and Switzerland’s banking sector was rattled by troubles at Credit Suisse.
The current rise in gold’s price is a sharp turnaround for the precious metal, which had been sliding in recent months on expectations that the U.S. Federal Reserve will continue raising interest rates to lower inflation.
Exchange-traded funds holding gold assets rose the most last week since April 2022, according to data from Bloomberg Markets.
In London trading, the spot price of gold rose as high as $2,009.73 U.S. per ounce. The last time gold traded above the $2,000 U.S. mark was in March 2022.
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