PRECIOUS-Gold prices rise as global banking crisis spurs safe-haven demand

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 16 (Reuters) - Gold prices edged higher on Thursday as troubles at Swiss lender Credit Suisse renewed fears of a banking crisis worldwide and steered traders towards the safe-haven metal.


FUNDAMENTALS
* Spot gold was up 0.1% at $1,919.86 per ounce, as of 0050 GMT, after rising more than 1% on Wednesday. U.S. gold futures fell 0.2% to $1,927.80.
* Shares of Credit Suisse slumped by as much as 30% on Wednesday after the lender's largest shareholder said it could not provide further support, prompting the chief executive officer to make new assurances on its financial strength.
* Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank.
* Data on Wednesday showed U.S. retail sales fell 0.4% in February as purchases of motor vehicles and other goods slumped.
* Separate data showed U.S. producer prices unexpectedly fell 0.1% in February.
* Markets now see a 51.1% chance of rates being held at current levels at the U.S. Federal Reserve's March meeting.
* Gold is considered a hedge against economic uncertainties, and tends to gain on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
* The dollar index eased 0.1%, making bullion less expensive for buyers holding other currencies. U.S. benchmark 10-year Treasury yields were lower.
* Spot silver rose 0.2% to $21.84 per ounce, platinum was 0.1% higher at $962.96 and palladium gained 1.4% at $1,467.90.
DATA/EVENTS (GMT) 1230 US Housing Starts Number Feb 1230 US Import Prices YY Feb 1230 US Initial Jobless Clm Weekly 1230 US Philly Fed Business Indx March 1315 EU ECB Refinancing Rate March 1315 EU ECB Deposit Rate March 1515 Christine Lagarde, President of the European Central Bank, presents the latest monetary policy decisions
(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)

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