Gold bugs have been waiting for this moment. The precious metal moved above $2,000 an ounce on Monday amid a wobbly banking sector, elevated inflation, and expectations of a 25 basis point rate hike (or none at all) at the next Fed meeting.
“When things get scary out there, investors run to safe havens, and gold is basically one of those major safe havens,” Gareth Soloway, chief market strategist at Inthemoneystocks.com and verifiedinvesting.com.
Gold futures (GC=F) are up 6% since the collapse of Silicon Valley Bank and the closure of Signature Bank of New York spurred concerns of a banking contagion. U.S. regulators swooped in with measures to shore up confidence in the banking system. Europe’s Credit Suisse debacle also sent investors into assets like bitcoin and precious metals.
