Gold Price (XAU/USD) pares the daily gains as it retreats from the highest levels in five weeks, marked earlier in the day, to $1,885 by the press time of the early Asian session on Monday.
In doing so, the precious metal struggles to extend the previous two-week uptrend as the United States Treasury Department and Federal Reserve (Fed) take action to defend the financial market crisis risk emanating from Silicon Valley Bank.
That said, the XAU/USD ignored better than forecast US Nonfarm Payrolls (NFP) to renew the one-month high, before rallying to a five-week top earlier in the day, as the US Dollar traced downbeat Treasury bond yields.
Gold price eases on measures to defend Silicon Valley Bank fallout
United States Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) took joint actions to tame the risks emanating from the Silicon Valley Bank (SVB) fallout during the weekend and exert downside pressure on Gold prices of late. “Taking decisive actions to protect the US economy by strengthening public confidence in our banking system,” said the US Treasury Department and Federal Reserve (Fed) in joint statements on the action plan to defend the Silicon Valley Bank (SVB). Market sentiment improved after the news release as the US regulators also closed the Signature Bank and announced plans to make depositors whole. While portraying the mood, S&P 500 Futures and the US Treasury bond yields rise after a downbeat close the previous day. It should be noted that the market sentiment roiled on Friday after the SVB spread the risks of another financial crisis.