Investors take to gold as Credit Suisse reignites banking fears, gold price at 1.5-month highs gold banks markets
Investors are embracing the gold market amid the quickly escalating banking contagion fears. Strong demand for the precious metal is keeping prices at 5-week highs Wednesday.
"We expect this banking turmoil to reinvigorate investor demand over the longer term," said ANZ senior commodity strategist Daniel Hynes. The key trigger analysts are watching is whether the Federal Reserve will pause its rate hike cycle as soon as next week — a topic that markets are currently debating. According to the CME FedWatch Tool, there is a 58% chance that the Fed will hold rates steady on March 22.
After the dramatic drop in the stock price, Credit Suisse appealed to the Swiss National Bank and federal regulators for public support, FT reported. Meanwhile, the European Central Bank contacted EU lenders and asked them to disclose their exposures to the Swiss lender, according to the same report.
Also, the Credit Suisse predicament could impact the European Central Bank's policy decision scheduled for Thursday.
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