SHAFAQNA Türkiye – The gold market saw a recovery yesterday after top US bank regulators faced tough questions about what led to the unexpected collapse of Silicon Valley Bank and Signature Bank. US banking regulators testified before the Senate Banking Committee, including representatives from the Fed, the Federal Deposit Insurance Corporation (FDIC), and the Treasury Department.
While regulators have stressed that the US banking system is strong and sound and promised to review existing rules, lawmakers have focused on studying new rules to prevent something like this from happening again.
$100 BILLION COMES FROM SVB
Fed Vice Chairman for Supervision Michael Barr also announced that the size of the outflow of money that SVB faced during the crash was $100 billion.
RESET RISK ATTITUDE
Lukman Otunuga, Senior Analyst at FXTM, said: “The US regulator-backed agreement for First Citizens Bank to acquire the failed Silicon Valley Bank (SVB) boosted global sentiment and eased tensions in the banking sector. A renewed appetite for risk will stimulate demand for global equities, perhaps at the expense of safe equities.” commented.
According to Otunugi, “After gold touched the $2,000 psychological level three times last week, the bears have taken advantage of this tenacious resistance to attack, dampening bank fears and further dampening the metal’s safe-haven appeal. While prices may decline in the short to medium term, they remain bullish in the long term due to expectations of a Fed rate cut in September.”
“2000 dollars is not far”
OANDA Senior Market Analyst Craig Erlam said gold is close to $2,000 and still quite high from recent lows.
“This suggests that investors either don’t think the mini-banking crisis is over or, more likely, the effects of the crisis in the credit markets have permanently reduced the tightening required from central banks,” Erlam said in a statement. If so, this could be bullish for gold and traders could look to all-time highs if there is a rate cut this year.” used phrases.
GOLD GOLD INCREASE PULSE
While the price of an ounce of gold was at the limit of 1970 dollars on Wednesday midweek, the price of a gram of gold in the domestic market is at 1208 Turkish lira and is on the rise. PCE data will be published in the US on Friday after the conclusion of the meeting of regulators with lawmakers. The data corresponding to the core index of personal consumption expenditures, the Fed considers leading in terms of inflation.