and concerns over the health of the global economy  gold has remained stable here's why the precious  

metal is continuing to shine investors piled into  gold in March the price is currently hovering at  

just under two thousand dollars an ounce and it  has risen 8.4 this year the recent rise comes  

after the collapse of Silicon Valley Bank and  Signature Bank in the US and the Takeover of  

Swiss Bank Credit Suisse by its rival UBS a late  March sell-off in Germany's Deutsche Bank has also  

ramped up concerns about the financial system  but yet gold has sparkled through the chaos in  

investors value gold for its stability during  uncertain times and often look to the precious  

metal as an alternative to the traditional banking  system here's one example of its recent appeal in  

the week following the svb collapse net inflows  into gold exchange traded funds stood at roughly  

14 tons that's over 1 billion dollars worth for a  couple of months before the collapse investors had  

been pulling money out of funds in March gold  benefited from expectations That central banks  

would reduce the speed of interest rate hikes  in order to cut pressure on the financial system  

over the last year the Federal Reserve has raised  interest rates in a bid to tame inflation these  

hikes made goal less attractive for investors  because unlike other Investments the metal does  

not pay interest in March Fed chair Jerome Powell  announced yet another rate rise but he hinted that  

it could be the last one for now leading to  a jump in gold prices we no longer state that  

we anticipate that ongoing rate increases will be  appropriate to coil inflation gold is also getting  

a boost from a decline in the dollar a weaker  dollar lifts the price of Commodities that are  

backed by the US currency one of which is gold to  compare gold had a more lackluster year in 2022  

it was briefly trading at about two thousand  dollars an ounce following Russia's invasion of  

Ukraine however as the FED began lifting its rates  to curb inflation the dollar soared to a 20-year  

High which led to a slight climb down in gold  prices but the US dollar has since retreated from  

its 2022 Peak which has enabled gold prices to  bounce back towards the end of March gold prices  

Rose towards its record level before dropping down  slightly that's as rescue measures for struggling  

Banks helped ease contagion fears however  analysts expect gold to remain resilient it  

has been performing strongly remaining above 1500  an ounce for the last three years according to  

the world gold Council analysts at Fitch Solutions  believe that mounting Global Financial instability  

is likely to keep on driving up gold prices  solidifying's reputation as a safe haven asset