Gold closes in on an all-time high thanks to de-dollarization and banking uncertainty
- Gold prices have jumped 8% since the collapse of Silicon Valley Bank.
- The precious metal passed $2,000 per ounce last week and traded at just 21 cents below its all-time high on Thursday, according to Refinitiv.
Gold prices are closing in on an all-time high with ongoing banking turmoil and the de-dollarization movement fueling demand for the precious metal.
Spot prices have jumped 8% since Silicon Valley Bank collapsed on March 10, according to Refinitiv, trading at around $2,028 per ounce at last check.
Investors tend to see the yellow metal as a so-called "safe haven" that they can rely on for steady returns in times of heightened volatility – so it's benefited from investors' fears about the health of US regional banks.
Beverly Hills-based PacWest said it would explore a sale Thursday, the latest setback for regional lenders.
Gold's peak for the year came that day, with its price reached $2,051 per ounce – just 21 cents below the record level of $2,072 per ounce, per Refinitiv.
The de-dollarization movement has also helped to fuel gold's recent rally, according to a report by the World Gold Council published last week.
The WGC found that central banks bought a record 228 tonnes of gold in the first quarter, with countries like Brazil, China, and Russia all trying to reduce their reliance on the greenback.