Gold rises 1% as dollar loses ground while risk appetite weakens

Gold prices rose on Tuesday as the dollar lost ground against most major rivals, with risk appetite dissipating while investors flock to safe havens such as precious metals. 

Banking Concerns Subside But Remain Ongoing 

While concerns over the banking crisis in the US eased recently with authorities intervening to prop up the sector, investors remain concerns about  a potential recession due to policy tightening by the Federal Reserve. 

BlackRock executives recently ruled out a rate cut this year because of the banking crisis, but noted the Fed might continue to hike interest rates to control inflation.

Additionally, the First Citizens bank agreed to purchase Silicon Valley Bank and carry its entire loans and private deposits.

‎In Europe, concerns about Deutsche Bank calmed down as well with the stock rebounding as costs of insuring its debts declined.

Bonds

According to government data, the CB consumer confidence index rose to 104.2 in March from 103.4 in February, beating estimates of 101. 

Otherwise, investors pulled off US bonds as optimism improved over the banking sector, with yields expected to rise once more. 

US two-year treasury yields rose by 7 basis points to 4.043%, while 10-year yields rose to 3.553%, as 30-year treasury yields rose to 3.771%. 

The dollar index fell 0.4% as of 19:05 GMT to 102.4, with a session-high at 102.7, and a low at 102.4.

Gold spot prices rose 1.1% as of 19:06 GMT, or $22.1 to $1,976 an ounce.