Logo of Phnom Penh Post newspaper Phnom Penh Post - What next for gold amid US bank crisis shocks?

What next for gold amid US bank crisis shocks?

Content image - Phnom Penh Post
Chhea Chhayheng, PPLS business manager

What next for gold amid US bank crisis shocks?

Gold prices on Friday skyrocketed amid the continuing shocks being felt in the current US banking crisis, marking the highest price in four months.

The price rose from $1,920 per ounce on opening to a day high of around $1,989 per ounce.

Reuters on Friday reported: “Gold prices surged more than two per cent on Friday as a wave of banking crises shook global markets and put bullion on track for its biggest weekly rise in three years, while bets solidified for a less aggressive Federal Reserve in its fight against inflation.

“‘Gold is surging on fears that more bad banking news could appear over the weekend and hopes that the Fed will pause its rate hikes next week,’” said Tai Wong, an independent metals trader based in New York.

“The collapse of Silicon Valley Bank in the US has highlighted banks’ vulnerabilities to sharply higher rates, while a rout in Credit Suisse shares has added to the market turmoil.”

Gold’s momentum continued at the start of this week, with a day high of around $2,009 per ounce, the highest rise recorded in the past four months.

However, it ended Monday in bearish fashion, followed by Tuesday seeing a drop from $2,009.75 to $1,935.56 per ounce.

But as of Wednesday, the daily trend for gold was again bullish, with an opening price of $1,939.51 per ounce.

“The dollar and stock markets slid, making bullion a more attractive investment. While it is considered a hedge against economic uncertainties, gold’s opportunity cost rises when interest rates are increased,” Reuters added.

With the price of gold testing $2,009 per ounce and retracing to around $1,935, PP Link Securities business manager Chhea Chhayheng said it already pointed to a continuing uptrend for gold.

For this week trading recommendation, investors and traders could consider trading gold in the range of $1,905 to $2,009 per ounce, with an average price of $1,965 per ounce.

Content image - Phnom Penh Post


  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom

  • PM warns of int’l election interference

    With the national election scheduled to take place in less than two months, Prime Minister Hun Sen has warned foreign nations and their diplomats not to interfere into Cambodia’s domestic affairs. He also hinted that their statements on court verdicts handed down to any