Gold Surges as SVB Fallout Spurs Rush to the Haven Asset
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Gold jumped the most in a day’s trading since November as Silicon Valley Bank’s collapse led investors to seek haven in bullion and concerns surrounding the financial industry mount.
Bullion advanced 2.4%, bringing its gains this month to 4.8%, the most since January, as the fallout from SVB’s collapse combined with a decline in the dollar index to drive up prices. It’s a rapid turnaround for gold, which in the year prior to last week’s meltdown of SVB was down 12%. The precious metal has now jumped above its 50-day moving average, signaling a change in momentum.