Gold tops $2k, bitcoin jumps as investors rush for safety

Gold is trading up from nearly $1880 last Monday when prices were pushed higher as a result of the collapse of Silicon Valley Bank last weekend

Gold’s price jumped near record highs and topped $2000 for the first time in more than a year this morning as investors scramble for stable ground after UBS’s rescue of Swiss rival Credit Suisse.

Gold, generally seen as a safe haven asset for investors during market turmoil, surged to trade at nearly $2,004 per ounce in early trading as investors flee dropping equity markets.

Gold is trading up from nearly $1880 last Monday when prices were pushed higher as a result of the collapse of Silicon Valley Bank last weekend.

Analysts at the World Gold Council said investors rushed into gold exchange-traded funds (ETFs) this morning to run away from the banking fallout.

Our database of physically backed gold ETFs showed that inflows are over 7t higher on the day, which further underlines 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 nearly $1970 per ounce, as per data from Bullion Vault.

The rise in prices this morning came after UBS struck a state-backed $3.25 billion deal to buy its troubled rival last night amid stability concerns. World markets were roiled by the move this morning.

The FTSE 100 dropped 1.6 per cent in early trading in London as bank and oil stocks dropped steeply. Shares in HSBC dropped around five per cent at market open, Barclays dropped more than six per cent, Natwest more than five per cent and LLoyds Banking group around four per cent.

The Eurostoxx 50, representing 50 of the largest listed companies in the Eurozone area, dropped over 1.7 per cent.

Bitcoin has seen a rise in prices today amid the turmoil of the past week. The leading crypto currency has increased over 15 per cent in the last five days and is around one per cent higher today, trading at nearly $28,348.