March 17 (Reuters) - Gold prices ticked up on Friday and
were on course for a third consecutive weekly rise as the global
banking crisis sent investors flocking to the safe-haven metal.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,920.19 per ounce, as of
0033 GMT. U.S. gold futures rose 0.1% to $1,925.50.
* Bullion is set to rise about 2.8% this week so far.
* Large U.S. banks injected $30 billion in deposits into
First Republic Bank on Thursday, swooping in to rescue
the lender caught up in a widening crisis triggered by the
collapse of two other mid-size U.S. lenders over the past week.
* The European Central Bank raised interest rates as
promised by 50 basis points on Thursday, sticking with its fight
against inflation and facing down calls by some investors to
hold back on policy tightening until turmoil in the banking
sector eases.
* The number of Americans filing new claims for unemployment
benefits fell more than expected last week, pointing to
continued labor market strength.
* U.S. central bankers are seen pressing on with their
inflation-fighting campaign with a quarter-point interest-rate
hike at their policy meeting next week that just days ago looked
possibly derailed by turmoil in the banking sector.
* Gold is traditionally considered a hedge against inflation
and economic uncertainties, but higher rates increase the
opportunity cost of holding the non-yielding asset.
* Spot silver fell 0.02% to $21.67 per ounce,
platinum firmed 0.3% to $975.47 and palladium was
0.1% higher at $1,432.49. All three metals were bound to gain
for the week.
DATA/EVENTS (GMT)
1000 EU HICP Final MM, YY Feb
1315 US Industrial Production MM Feb
1400 US U Mich Sentiment Prelim March
(Reporting by Kavya Guduru in Bengaluru; Editing by Sonali
Paul)
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