Gold price remains strong. In the midst of the banking crisis. presently sits just above the $1,930 mark. Following the strong two-way price movements of the previous day. The gold price regains some positive momentum and keeps its buy tone in the European session.

Gold price firmed on Friday

As traders assess a hectic week that has favored the valuable metal, the price of gold has remained stable so far on Friday. The turmoil engulfing other markets has increased interest in commodities seen as safe havens, like gold.

Gold supported by money infusion to defuse banking crises

First Republic Bank received USD 30 billion in deposits overnight, according to the news. While Goldman Sachs and Morgan Stanley each contributed USD 2.5 billion. JP Morgan, Citibank, Bank of America, and Wells Fargo each contributed USD 5 billion.

Less money will be contributed by other institutions. These bigger banks reportedly experienced a rise in assets as customers reduced their reliance on small and local lenders.

The news was that a sizable surge in US institutions was using the Federal Reserve’s discount window. Also appeared to provide some solace to the markets.

Banks acquired USD 152.85 billion from the lender of last resort in the week that concluded on March 15th. Up from USD 5 billion the week before. It surpassed the previous record high, which was USD 111 billion during the world financial crisis in 2008.

Investors are looking for some respite from financial crises

A rise in concern over the severity of the bank problems could be supportive of gold. The market might once again shift its attention to other factors that might have an effect on yellow metal prices. If the rescue packages are sufficient to stop the tide.

US real yields fell early in the week before rising on Friday. This may be a reflection of the belief that stability may have been regained s a result of the liquidity measures so far revealed.

What if, the US dollar regains strength?

If that is the case, the Fed’s aggressive downward correction in its rate hike cycle may be reversed. Given that inflation is still significantly above goal. In the event that higher US rates resume, the US Dollar may gain support, which could weaken gold.

Fundamental Overview

Following the strong two-way price movements of the previous day. The gold price regains some positive impetus and keeps its buy tone through Friday.

The XAUUSD is presently trading just above $1,930 Up more than 0.60% over the day and is still very close to the 6-week high reached on Monday.

Technical Perspective

Technically, any further advance above the $1,937–1,938 area. Is likely to run into resistance close to the multi-month top, around the $1,959–1,960 region in Feb.

A small amount of follow-through purchasing will be viewed as a fresh catalyst for bullish traders. Allowing the gold price to target for restoring the psychological $2,000 level.