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XAU/USD Price Outlook: SVB Collapse Drives Demand for Safe-Haven Gold

March 13, 2023

Via: DailyFX

The collapse of SVB (Silicon Valley Bank) has sent jitters through global markets, supporting safe-haven gold. After the financial institution came under scrutiny last week, fears over client’s access to deposits exacerbated concerns.

While the collapse marks the largest bank failure since 2008, higher interest rates have placed pressure on the financial system. Although the Fed, treasury and banking regulators assured investors that all clients would be granted access to their funds, risks of further contagion has boosted demand for safe-haven assets.

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