USA: Gold price rose on Friday as investors focused on safe-haven assets amid concerns about future market volatility due to US and European banking crises.

The precious metal has been extending its gains since opening trade on Monday at $1,879 an ounce. On Friday afternoon, it was trading at $1,936, up from the day's opening price of $1,921.

To hedge risk during periods of market uncertainty, investors generally turn to gold. The precious metal has a long history of serving as a reliable investment in times of monetary volatility, stock market crises, armed conflicts and pandemics.

Also Read: ‘Govt mulls to introduce PLI 2.0 for specialty steel’

Investors are currently buying more gold in an attempt to protect themselves from the banking crisis affecting the US.

The question on traders' minds right now is whether the fear remains, meaning that yields could slide as the dust settles, which could be a short-term drag on gold, or if the unrest is just too late. is starting.

Also Read: Himachal Budget-2023-24 focuses on rural economy, employment

According to senior market analyst at Oanda Craig Erlam, gold could move closer to its February high near $1,960, with $2,000 acting as a key level above it.

Major US banks are coming together to invest $30 billion in struggling First Republic Bank amid a worsening banking crisis caused by the failure of two other mid-sized lenders, SVB and Signature Bank.

Also Read: Iranian oil exports surged to their highest level since 2018 last year

While Goldman Sachs and Morgan Stanley are each accumulating $2.5 billion, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo have each said they will collect $5 billion of uninsured deposits. A total of $1 billion has been pledged by BNY-Mellon, PNC Bank, State Street, Truist and US Bank.