Gold Falls as Investors Return to Risky Assets

Gold prices dropped 0.2% in spot trading to $1,951.80 per ounce. U.S. gold futures fell 0.1% to $1,952.10. European stocks continued their recovery amid investor hopes of containing the banking crisis following a deal to acquire the collapsed Silicon Valley Bank. Concurrently, Ole Hansen, head of commodity strategy at Saxo Bank, confirmed that gold is under pressure as calm returns to the market after recent developments in the banking sector that led to a rise in risky assets. He added that gold prices may fall to $1,933 in the near term but the outlook for gold remains bullish as U.S. interest rates approach their peak and with the risk of recession in the coming months. Silver in spot trading fell 1% to $22.87 per ounce, platinum decreased by 0.6% to $965.57, and palladium dipped 0.3% to $1,404.47.