Gold is back above $2,000 an ounce on US debt ceiling and regional bank concerns

Published: April 26, 2023 at 8:17 am ET

Gold futures edged back above $2,000 an ounce on Wednesday as concerns over the US debt ceiling debate in Congress weighed on financial markets, while weak regional bank earnings and recession fears have also helped the yellow metal become a safe haven asset to give impetus.

price action

market leader

After a pullback, according to Fiona Cincotta, senior financial at City Index, gold climbed back above $2,000 an ounce thanks to a number of factors.

“Gold…

Gold futures edged back above $2,000 an ounce on Wednesday as concerns over the US debt ceiling debate in Congress weighed on financial markets, while weak regional bank earnings and recession fears have also helped the yellow metal become a safe haven asset to give impetus.

price action

• Gold for delivery in June
  
  GC00
  

  GCM23
  

  rose $6.30, or 0.3%, to $2,010 an ounce on the Comex.

• May silver
  
  SI00
  

  SIK23
  

  rose 18 cents, or 0.7%, to $25.07 an ounce.

• June Palladium
  
  PAM23
  

  was up $29, or 2%, to $1,510 an ounce, while platinum for July delivery rose
  
  23 PLN
  

  rose $21, or 2%, to $1,119 an ounce.

• May copper
  
  HGN23
  

  rose 2 cents, or 0.6%, to $3.89 a pound.

market leader

After a pullback, according to Fiona Cincotta, senior financial at City Index, gold climbed back above $2,000 an ounce thanks to a number of factors.

“Gold is holding steady after two days of gains. The precious metal surged above $2,000 in the previous session after a string of weaker-than-expected regional bank gains and after consumer confidence tumbled, raising fears of a recession, Cincotta said.

“Concerns over the US debt ceiling also underpin the precious metal after Treasury Secretary Janet Yellen warned of the potentially serious economic fallout if the House of Representatives does not raise the debt ceiling.”

A weaker US dollar also helped boost gold prices, according to analysts. A weaker US dollar often helps support the price of gold since commodities like gold are typically priced in dollars. The ICE US Dollar Index

DXY

,
a measure of the dollar’s strength against a basket of rivals, fell 0.5% to 101.40.