The price of gold rose by almost 1% on Monday morning, Report informs.
The depreciation of the US dollar and expectations for the rate of the US Federal Reserve support the quotes of the precious metal.
The price of April gold futures on the New York Comex rose by $16.4, or 0.88%, to $1,883.6 per troy ounce. May futures for silver rose 1.47% to $20.808 an ounce.
The dollar index (the exchange rate against a basket of currencies of six US trading partners) is down 0.69% to 103.85 points.
The decline in the value of the US dollar is associated with the bankruptcy of the American Silicon Valley Bank (SVB), the largest bank failure in the United States since the 2008 financial crisis. The situation is associated with an increase in the discount rate of the Fed. At the same time, the US authorities decided to provide all depositors of the bankrupt SVB with access to their savings from March 13.
The failure of SVB bank on Friday caused a panic in the market, which increased risk aversion and significantly reduced the market's expectations for an increase in interest rates, Bloomberg quotes analysts at Jinrui Futures Co.
According to the CME Group, 93.7% of analysts expect the rate hike to continue at the same pace - by 25 basis points, to 4.75-5% per annum. Many expected a 50 basis point rate hike last week. Gold is sensitive to Fed monetary policy expectations, which affect the dollar's value.