Gold enjoys sustained buying as dollar eases

Published on Mar 13, 2023 11:50

Gold is hovering at a more than one-month high in early Asia on Monday tracing sharp decline in dollar index and treasury yields hoping that Fed will scale back aggressive rate hikes in the wake of Silicon Valley Bank`s failure to avoid further stress on the financial system. Investors assessed the prospect of further systemic risk following the collapse of Silicon Valley Bank, though US regulators announced plans to backstop depositors and provide a new lending program to financial institutions. The dollar index that measures the greenback against a basket of currencies fell below 104 mark and is currently down 0.64% at 103.49. Meanwhile COMEX gold sutures are quoting at $1888.20 an ounce, up 1.12% on the day. However, a sharp upside in bitcoin is seen limiting gains in the precious metal.