Gold prices continue to rise and are closing in on an all-time high.
On May 9, the price of gold was up 0.24% and trading at $2,037.70 U.S. per ounce, just below its record high of $$2,072.49 U.S. an ounce.
Ongoing turmoil in the banking sector and growing fears of an economic recession are driving investors into gold, which is viewed as a safe-haven asset during times of uncertainty.
On May 3, the U.S. Federal Reserve raised interest rates by 25-basis points, bringing its Fed Funds target rate to a range of 5% to 5.25%, its highest level in 16 years.
The higher interest rates have exacerbated concerns about their impact on U.S. banks, three of which have failed since the beginning of March this year.
Higher interest rates are also likely to further slow the U.S. economy, potentially tipping it into a recession, typically defined as two consecutive quarters of economic contraction.
These concerns are leading a growing number of investors to put capital into gold, which operates as a store of value.
However, gold is not the only precious metal rising currently. The price of silver and palladium have also risen sharply this year, with silver now trading at $25.84 U.S.
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