Gold rallies briefly above $2,000 on safety bets after banking uncertainty

Posted on by Vrasidas Neofytou

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

The price of gold rose as high as $2,014/oz early Monday morning, before retracing to below $1,980/oz on the day on improved risk sentiment and some profit-taking trades since it performed strongly during the last weeks.

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

The price of gold rose as high as $2,014/oz early Monday morning, before retracing to below $1,980/oz on the day on improved risk sentiment and some profit-taking trades since it performed strongly during the last weeks.

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Gold shines once again, as its price briefly topped the $2,000 key level on Monday morning for the first time since early March 2022, as the domino collapse of Silicon Valley Bank, Signature Bank, and Credit Suisse fuelled worries of broader banking and financial instability and drove investors to the safety of the all-time haven yellow metal.

The price of gold rose as high as $2,014/oz early Monday morning, before retracing to below $1,980/oz on the day on improved risk sentiment and some profit-taking trades since it performed strongly during the last weeks.

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

Gold shines once again, as its price briefly topped the $2,000 key level on Monday morning for the first time since early March 2022, as the domino collapse of Silicon Valley Bank, Signature Bank, and Credit Suisse fuelled worries of broader banking and financial instability and drove investors to the safety of the all-time haven yellow metal.

The price of gold rose as high as $2,014/oz early Monday morning, before retracing to below $1,980/oz on the day on improved risk sentiment and some profit-taking trades since it performed strongly during the last weeks.

Gold price, 1-hour chart

A similar picture is seen on the other bullion, Silver, which its price climbed as high as $22,70/oz in the same period, before retreating to nearly $22/oz on the day.

Bullion extended last week’s strong gains on growing fear over the health of the U.S. banking sector despite the move by 11 major U.S. Banks to pledge a deposit totaling $30 billion of cash in the embattled First Republic Bank, to bolster confidence in the banking system, and to stop a spreading panic following a pair of recent bank failures.

Dollar-denominated and zero-yield gold has also got a boost from a softening U.S. dollar and bond yields, as investors expect that the recent banking crisis could cause Federal Reserve to pause or hike by a lower speed than initially expected, to avoid further pressure on the already fragile economic system.

The DXY- dollar index fell as low as 103.40 this morning, its lowest since mid-February, while the yield on the 2-year Treasury notes briefly retreated below 3.70%, making gold and silver more attractive for buyers with foreign currency.

 

WTI crude oil slips to $64/b on banking and recession fears

Posted on by Vrasidas Neofytou

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

WTI crude oil, 2-hour chart

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

WTI crude oil, 2-hour chart

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

WTI crude oil, 2-hour chart

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Crude oil contracts have started the new week with further declines following the banking crisis and the economic uncertainty, with the price of Brent crude falling as low as the $70/b support level, or down 2% on Monday morning, and the WTI crude sliding to the lows of $64/b for the first time since December 2021.

WTI crude oil, 2-hour chart

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Crude oil contracts have started the new week with further declines following the banking crisis and the economic uncertainty, with the price of Brent crude falling as low as the $70/b support level, or down 2% on Monday morning, and the WTI crude sliding to the lows of $64/b for the first time since December 2021.

WTI crude oil, 2-hour chart

WTI crude oil prices hit a 15-month low of $64.30/b this morning, before rebounding higher later the day, adding losses further to last week’s 10% declines on a broader selloff on the banking crisis.

The broader risk aversion sentiment hit hard the growth-sensitive crude oil prices as investors fear that the ongoing crisis in the U.S. and European banking sector as well as further interest rate hikes will damage global economic growth and manufacturing activity and, in turn, weigh on demand for petroleum products.

Despite the takeover of the embattled rival Credit Suisse by Swiss banking giant UBS for just over $3 billion during the weekend, markets remained cautious and moved away from risk assets such as crude oil, concerning another financial collapse similar to the 2008 crisis.

Crude sellers believe that the recent banking collapses like Credit Suisse, Silicon Valley Bank, and Signature Bank are likely to rein in lending to preserve cash during these troubled times, which will limit economic activity as the year progresses, hitting fuel demand.

Furthermore, energy investors worry over the potential demand boost from a reopening of China- the world’s largest importer of crude oil, whose buying was harnessed for much of 2022 by strict pandemic-led mobility restrictions.

However, crude oil prices have found some support after the International Energy Agency said in the March issue of its monthly Oil Market Report that it expects world oil demand growth to “accelerate sharply over the course of 2023,” seeing “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery.”

Euro advances after ECB follows thought with 50 bps rate hike

Posted on by Vrasidas Neofytou

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

The common currency advances to $1.0650 against the U.S. dollar on Friday morning benefiting from the decision of the European Central Bank to proceed with a further 50 bps rate hike to curb inflation, signaling also that it is ready to supply liquidity to banks if needed, amid recent turmoil in the U.S. and European banking sector.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

The common currency advances to $1.0650 against the U.S. dollar on Friday morning benefiting from the decision of the European Central Bank to proceed with a further 50 bps rate hike to curb inflation, signaling also that it is ready to supply liquidity to banks if needed, amid recent turmoil in the U.S. and European banking sector.

EUR/USD pair, 1-hour chart

On the recent turbulent economic and banking environment, the European Central Bank went ahead with a well-expected 50-bps rate hike at its policy meeting on Thursday, sending the deposit facility rate to 3% to fight the persistent inflation in the Eurozone, which stood at 8.5% in February, well above the ECB’s target of 2%.

The ECB revised its inflation expectations, projecting headline inflation averaging 5.3% this year, followed by 2.9% in 2024. In December, the bank had projected a 6.3% inflation figure for 2023 and a 3.4% rate in 2024.

Since inflation across the 20-member region remains sharply above the targeted level of 2%, ECB acted aggressively by lifting its main rate from -0.50% last summer to the current 3% level.

Hence, the risk-sensitive Euro gets a further boost from the recent weakness of the U.S. dollar as risk sentiment improved after U.S. authorities and 11 large banks moved to ease the stress on the financial system by injecting $30 billion in deposits into First Republic Bank.

The rescue move was necessary to stop a spreading panic among depositors in the banking sector triggered by the collapse of two other mid-size U.S. banks, the Silicon Valley Bank and Signature Bank over the past week.

Meanwhile, Euro was also affected positively yesterday after news that the embattled Switzerland-based Credit Suisse would borrow up to $54 billion from the Swiss National Bank, easing-for the moment- fears about the health of Europe’s banking sector.

ECB policymakers sought to reassure investors that eurozone banks were resilient and that if anything, the move to higher rates should bolster their margins.

Crude oil hits 2021 lows on banking crisis fears

Posted on by Vrasidas Neofytou

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

 

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Risk-sensitive oil prices initially plunged 7% on early Wednesday to their lowest levels since December 2021, after shares of Credit Suisse plummeted to a new all-time low for the second consecutive day when its top investor Saudi National Bank ruled out further assistance, triggering a massive selloff across the board.

 

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Risk-sensitive oil prices initially plunged 7% on early Wednesday to their lowest levels since December 2021, after shares of Credit Suisse plummeted to a new all-time low for the second consecutive day when its top investor Saudi National Bank ruled out further assistance, triggering a massive selloff across the board.

 

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Both Brent and WTI crude oil prices hit a fresh 15-month low of $71,70/b and $67,70/b during Wednesday’s trading session, or down 7%, on a broad selloff amid a turmoil around Credit Suisse before rebounding later the day as markets calmed after the bank secured a lifeline loan from the Swiss National Bank.

Risk-sensitive oil prices initially plunged 7% on early Wednesday to their lowest levels since December 2021, after shares of Credit Suisse plummeted to a new all-time low for the second consecutive day when its top investor Saudi National Bank ruled out further assistance, triggering a massive selloff across the board.

 

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Both Brent and WTI crude oil prices hit a fresh 15-month low of $71,70/b and $67,70/b during Wednesday’s trading session, or down 7%, on a broad selloff amid a turmoil around Credit Suisse before rebounding later the day as markets calmed after the bank secured a lifeline loan from the Swiss National Bank.

Risk-sensitive oil prices initially plunged 7% on early Wednesday to their lowest levels since December 2021, after shares of Credit Suisse plummeted to a new all-time low for the second consecutive day when its top investor Saudi National Bank ruled out further assistance, triggering a massive selloff across the board.

 

Brent crude, 1-hour chart

However, oil prices managed to bounce off intraday lows toward $75/b and $69/b respectively following the news that the lender secured a $54 billion covered loan facility and a short-term liquidity facility from the Swiss central bank.

The global crude benchmark Brent has lost nearly 10% since last Friday’s collapse of Silicon Valley Bank, while U.S.-based WTI crude is down about 11% following a widespread risk aversion sentiment.

Investors remained nervous about the prospect of further market turbulence and the banking sector outlook which may keep pressure on the growth-led crude oil prices in the short term.

Hence, the oversupply signals have also increased pressure on oil prices, after OPEC said in its monthly report released on Tuesday that it was pumping about 28.92 million barrels of crude a day, or about 300,000 a day more than it expects will be needed in the second quarter of the year, while the production from Russia continues to prove resilient to international sanctions.

Finally, higher interest rates depress demand for petroleum products as economic growth slows but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand, despite the prospect of a recovery in Chinese fuel demand.

Bitcoin climbs to a 9-month high of $26,500 on the banking crisis

Posted on by Vrasidas Neofytou

 

 

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Bitcoin’s market cap was last at $501.95B or 44.52% of the total cryptocurrency market cap, while the price is still down 62% from its all-time high of $69,000 set on November 10, 2021.

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Bitcoin’s market cap was last at $501.95B or 44.52% of the total cryptocurrency market cap, while the price is still down 62% from its all-time high of $69,000 set on November 10, 2021.

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Bitcoin surged to its highest level since June 2022 and just before its pre-FTX bottom, climbing as high as $26,500 on Tuesday morning, extending its recent rally in response to the brewing financial crises and bank collapses.

Bitcoin’s market cap was last at $501.95B or 44.52% of the total cryptocurrency market cap, while the price is still down 62% from its all-time high of $69,000 set on November 10, 2021.

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Bitcoin surged to its highest level since June 2022 and just before its pre-FTX bottom, climbing as high as $26,500 on Tuesday morning, extending its recent rally in response to the brewing financial crises and bank collapses.

Bitcoin’s market cap was last at $501.95B or 44.52% of the total cryptocurrency market cap, while the price is still down 62% from its all-time high of $69,000 set on November 10, 2021.

BTC/USD, Daily chart

Like Bitcoin, Ether, the second largest in value digital coin gained 11% yesterday, trading as high as $1,780 (2023 peak) before retreating to the current levels of $1,700, waiting for the next price catalyst to move either side.

The move upwards pushed Ethereum’s market cap up to $213.47B, or 19% of the total cryptocurrency market cap, while the price is still down 64% from its all-time high of $4,864 set on November 10, 2021.

Both Bitcoin and Ethereum gained more than 20% since last Friday, when U.S. regulators shut down Silicon Valley Bank and Signature Bank, sending investors to the decentralized currencies for safety.

Bitcoin, which started 2023 at around the $16,500 mark, has risen over 50% so far in the year, while Ether gained 45% year to date, starting the year at around $1,200.

Following the ongoing banking crisis and the growing stress for the financial system, many investors have turned bullish on cryptos as they believe that Federal Reserve could pause or soften interest rate hikes to prevent further economic damage.

In such a case, the U.S. dollar could have weakened from the current levels, benefiting dollar-denominated digital currencies such as the BTC/USD or ETH/USD pairs, and improving the appetite for risk assets like cryptocurrencies.

Some crypto enthusiasts believe that cryptocurrencies will shine again, following the recent US banking kerfuffle, despite a different cause for concern; maybe or-, especially Bitcoin, since it was created for a time like this, as it was inspired by the 2008 financial crisis, launching in January 2009. Cryptocurrency prices skyrocketed also during the Cyprus banking crisis, nearly 10 years to the date. 

 

 

 

Gold and Silver shine on market turmoil after SVB collapse

Posted on by Vrasidas Neofytou

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Gold appears to be having a comeback in March since the price has gained over $100 in the last few days to hit a six-week high of $1,915/oz or up 2% during Monday’s session on haven bets following the echo across global markets of the collapse of Silicon Valley Bank and Signature Bank.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Gold appears to be having a comeback in March since the price has gained over $100 in the last few days to hit a six-week high of $1,915/oz or up 2% during Monday’s session on haven bets following the echo across global markets of the collapse of Silicon Valley Bank and Signature Bank.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Many investors consider gold and silver to be the ultimate safe-haven hedge against economic uncertainties, market turmoil, and volatile trading sessions.

Gold appears to be having a comeback in March since the price has gained over $100 in the last few days to hit a six-week high of $1,915/oz or up 2% during Monday’s session on haven bets following the echo across global markets of the collapse of Silicon Valley Bank and Signature Bank.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

Many investors consider gold and silver to be the ultimate safe-haven hedge against economic uncertainties, market turmoil, and volatile trading sessions.

Gold appears to be having a comeback in March since the price has gained over $100 in the last few days to hit a six-week high of $1,915/oz or up 2% during Monday’s session on haven bets following the echo across global markets of the collapse of Silicon Valley Bank and Signature Bank.

Gold, 2-hour chart

Like Gold, the smaller sister Silver also climbed as high as $22/oz, or up 4% yesterday, coming off monthly lows of $20/oz hit early last week.

Investors have turned on the safety of bullion in the aftershock of the SVB’s fallout, along with the fall of the U.S. dollar amid a pullback in hawkish rate expectations by Federal Reserve.

The Federal Open Market Committee (FOMC) gathers on March 21-22 to decide the next monetary policy move in its fight against persistent inflation, and many investors expect that SVB collapse and the banking crisis could cause Federal Reserve to pause or soften interest rate hikes to prevent further economic damage.

Fed Fund futures prices show that a majority of traders now expect a 25-basis point hike by the Fed on the next FOMC meeting following initial expectations for a 50 bps hike.

As a result, the DXY-U.S. dollar index broke below the 104 level for the first time since mid-February, while both 2-y and 10-y bond yields tumbled as low as 3.80% and 3.40% on Monday on prospects for a less hawkish Fed in the coming months, benefiting the dollar-denominated and zero-yield gold and silver.

The impact of the SVB collapse has dramatically affected the banking sector, as investors sharply cut their exposure to regional bank stocks amid fears of contagion from a brewing banking crisis in the U.S. and moved some funds into the safety of bullion.

Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn, while its collapse is the second-biggest bank collapse in U.S. history.

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