Gold has seen almost no increase in price on Friday morning though in the first week of the month it may demonstrate some 3.5% growth, Report informs, citing trading data.
June futures grew by $0.45 (0.02%) to $2,056.15 per troy ounce at New York's Comex, while July futures for silver increased by 0.21% to $26.282 per ounce.
Thus, the price of gold for the first week of May may demonstrate a strong increase, just like it was a month earlier, when the precious metal rose on concerns over the US banking system.
This week in many ways revived the fears of March. Just like then, a large bank - First Republic - could not cope with financial difficulties. On Monday, it was transferred by the California Department of Financial Protection and Innovation to the Federal Deposit Insurance Corporation (FDIC), which at the same time accepted a bid from JPMorgan Chase to buy the bank's deposits and assets.
In addition, global regulators updated refinancing rates. On Wednesday, the US Federal Reserve System raised it by 0.25 percentage points, up to 5-5.25%, and after it, on Thursday, the European Central Bank - by the same 0.25 percentage points, up to 3, 75%. This could have a dual effect on the precious metal, since, on the one hand, tightening monetary policy may increase fears of a recession in the markets, on the other hand, it contributes to the strengthening, in this case, including the dollar, which inversely affects the price of gold.