Gold price tops $2,000 and Bitcoin gets a bump as investors scramble for safety after Credit Suisse rescue
Gold’s price climbed near record highs and topped $2000 for the first time in over a year this morning as investors scramble for steady ground following UBS’s rescue of Swiss rival Credit Suisse.
Gold, typically seen as a safe haven asset for investors during market turmoil, rocketed to trade at around $2,004 per ounce in early trading as investors flee tumbling equity markets.
Gold is trading up from around $1880 last Monday when prices were pushed upwards by the fallout of the collapse of Silicon Valley Bank last weekend.
Analysts at the World Gold Council said investors rushed into gold exchange-traded funds this morning to escape the banking fallout.
“Our database of physically backed gold Exchange-Traded Funds showed that inflows are up by more than 7t on the day, which further highlights that the world’s investors are seeking safety,” John Reade, chief market strategist at the World Gold Council, told City A.M.
The gold price has since settled to trade at around $1970 per ounce as of 2:30pm, according to data from Bullion Vault.
The pop in prices this morning came after UBS struck a state-backed $3.25bn deal to buy its beleaguered rival last night amid fears over its stability. Markets globally were roiled by the move this morning.
The FTSE 100 tumbled 1.6 per cent in early trading in London as bank and oil stocks fell sharply. Shares in HSBC fell nearly five per cent at market open, Barclays fell over six per cent, Natwest over five per cent and LLoyds Banking group nearly four per cent.
The Eurostoxx 50, representing 50 of the biggest listed firms in the Eurozone area, fell more than 1.7 per cent.
Bitcoin has seen a bump in prices today amid the turbulence of the past week. The flagship crypto currency has risen more than 15 per cent in the past five days and is up nearly one per cent today, trading at around $28,348.