Gold prices reached significant levels on Wednesday, buoyed by safe haven demand as concerns over weak US company earnings and economic data fueled fears of a potential recession this year. Resurging worries of a banking crisis also boosted safe haven demand.
Spot gold rose 0.2% to $2,001.76 an ounce, while gold futures rose 0.4% to $2,011.65 an ounce by 20:26 ET (00:26 GMT). Both instruments rose sharply on Tuesday and were set for a third straight day of gains.
Edward Moya, senior market analyst at Oanda, commented that “Gold is trying to get back where it belongs, above the $2,000 an ounce level.” The uncertainty over monetary policy and a stronger dollar had weighed on gold in recent weeks.
The bank is widely expected to hike interest rates by 25 basis points when it meets next week, and is likely to provide some cues on how much higher interest rates will go.
Among industrial metals, copper prices steadied from recent losses, as the prospect of worsening economic growth pointed to weaker demand for the red metal.
Copper futures rose 0.1% to $3.870 a pound but were trading down nearly 3% for the week after falling by a similar margin last week.
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