Once Credit Suisse became the newest focus, safe-haven gold slowed its advance on Thursday.
After rising more than 1% to $1,937.28 on Wednesday, spot gold fell 0.1% to $1,916.89 per ounce at 0648 GMT. U.S. gold futures fell 0.5% to $1,922.00.
As its shares fell on Wednesday, Credit Suisse Group AG announced on Thursday it will borrow up to 50 billion francs ($54 billion) from the Swiss National Bank to enhance liquidity, slowing equities market selloffs.
Geojit Financial Services’ head of commodities analysis, Hareesh V, described Thursday’s slight decline as a technical correction, saying investors are still looking for a specific asset after the financial crisis.
A weakening dollar made gold cheaper for overseas buyers.
“Longer-term, gold’s excellent average performance in the lead-up to and following both first Fed rate reduction and U.S. recessions keeps us inclined for higher prices as macro uncertainty looms,” JP Morgan analysts said, projecting gold to exceed $2,000/oz this year.
Bullion is a hedge against economic uncertainty, but increasing rates raise the opportunity cost of owning the non-yielding asset.
The March Fed meeting has a 68.9% likelihood of a 25 basis-point raise.
Small bank stress elevated Goldman Sachs’ chance of a U.S. recession in the coming year to 35%.
Silver fell 0.4% to $21.69 per ounce, platinum 0.1% to $961.27, and palladium 0.5% to $1,455.03.
