Gold price today March 16: Gold skyrockets as banking crisis spreads
Gold prices today, March 16, on the international market increased sharply despite the USD also escalating. Investors are worried that the banking crisis will spread from the US to the world when there are bad signals in Europe.
Domestic gold price
End of trading session on March 15,domestic 9999 gold priceListed by SJC and Doji Gold and Gemstone Group in the following order of buying and selling:
SJC Hanoi: 65,950,000 VND/tael - 66,670,000 VND/tael; Doji Hanoi: 65,950,000 VND/tael - 66,650,000 VND/tael; SJC Ho Chi Minh City: 65,950,000 VND/tael - 66,650,000 VND/tael; Doji Ho Chi Minh City: 65,950,000 VND/tael - 66,650,000 VND/tael.
 |
Gold prices increased sharply. Photo: Internet |
International gold price
On the night of March 15 (Vietnam time), the world spot gold price stood at around 1,925 USD/ounce. Gold for April delivery on the Comex New York floor was at 1,928 USD/ounce.
The world gold price on the night of March 15 was about 5.5% higher (101 USD/ounce) than at the end of 2022. World gold converted according to the bank USD price was 55.9 million VND/tael, including taxes and fees, about 10.8 million VND/tael lower than the domestic gold price as of the end of the afternoon session on March 15.
Gold prices on the international market increased sharply despite the USD also escalating. Investors are worried that the banking crisis will spread from the US to the world when there are bad signals in Europe.
Gold prices surged to a five-week high as investors sought refuge from the storm. Fears of a global banking/financial crisis are growing.
In Europe, bank stock prices fell across the board, including Credit Suisse shares, after investors became concerned about the bank's financial health.
The banking turmoil has spread from the US to Europe.
Last week, the US recorded the bankruptcy of two banks, Silicon Valley Bank and Signature Bank.
The European Central Bank meets on March 16 and is expected to raise its key interest rate by 50 basis points. However, the eurozone banking system is shaky, which could change the ECB's plans at the last minute.
This is the factor that pulls the USD back up even though there is a heated debate about whether the Fed will raise the basic interest rate by 25 basis points or keep it unchanged at the meeting on March 22, in the context of the US banking crisis.
Although the USD increased quite strongly, gold price also increased impressively as investors sought safe assets including USD and gold.
Gold price forecast
Gold is expected to continue to be supported in the context of the international bond market turmoil and causing many banks around the world to stand on the brink of bankruptcy.
A financial crisis, if it occurs, will push precious metals prices to continue to increase.
In the medium term, gold is under pressure to fall because the Fed still has to raise interest rates to fight inflation, which is currently at a high level.
Investors are now waiting to see how the financial situation in Europe pans out. Credit Suisse shares fell to an all-time low on March 15 after the National Bank of Saudi Arabia said it would not provide further financial support to the bank.
