Gold prices on track for largest weekly profit in 2023 on banking concerns

Gold prices rose in European trade on Friday, maintaining gains for the third straight session and hovering near six-week highs as the greenback declines against major rivals. 

Gold is on track for the third weekly profit in a row, and the largest in 2023 amid increasing demand on safe havens due to concerns about the global banking system.

Gold Prices Today

Gold prices rose 0.7% to $1,934 an ounce, after rising 0.1% yesterday, the second profit in a row, and after hitting six-week highs earlier at $1,937 on the Credit Suisse bank crisis. 

The Dollar

The dollar index fell 0.5% on Friday for the second session against a a basket of major rivals, underpinning gold prices. 

As cautious calm spreads in the market, demand on dollar as an alternative investment cooled with higher risk currencies such as euro and the pound gaining. 

Weekly Trades

Gold prices are up 3.6% so far this week, on track for the third largest weekly profit in a row, and the largest profit in 2023.

Haven demand on gold prices remain strong following the collapse of the SVB and two other banks in the US, and the troubles facing the Swiss Credit Suisse bank.

Analysis

Several analysts note that banking concerns continue to buoy gold prices amid ongoing risks, while central banks are expected to reduce the pace of rate hikes.

Investors continue to seek havens to deposit and safeguard their investments away from the banking sector, underpinning gold. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday at 914.72 tones, the highest since February 28.