The banking sector has stolen the limelight this past week, with worries about contagion spilling over to the broader market.
The rising banking fears have been so significant that even gold, which has been rising sharply in recent days on falling yields, has struggled to get past $2,000, City Index and FOREX.com market analyst Fawad Razaqzada noted.
But gold’s appeal as a safe-haven asset and the rallying bond markets suggests it is just a matter of time, Razaqzada commented in a client note.
“Indeed, the US dollar has continued to weaken against the yen, as the short-end of the yield curve remains under pressure, with US 2-year yields dropping below 3.60% today,” he said.
“The market is thus betting that we have reached a peak in terms of rate hikes and that from here looser monetary policy should follow.”
After dipping below $1,945 an ounce midweek, gold has recovered back above $1,990
Shares of some miners have joined in on the action: Golden Shield Resources (CSE:GSRI, OTCQB:GSRFF) jumped 8.3% by shortly after noon on Friday, while Thor Energy PLC (AIM:THR, OTCQB:THORF, ASX:THR) was up 9%. Crestview Exploration Inc (CSE:CRS) gained 5.5% and Troilus Gold Corp (TSX:TLG, OTCQX:CHXMF) was 1.5% higher.
Catch up on the eventful week that was for precious metals here: