Gold Heads For Best Week Since November On Banking Troubles

By Seher Dareen

March 17 (Reuters) – The price of gold rose on Friday, posting its biggest weekly gain since mid-November, as the global banking crisis prompted investors to flock to the safe-haven asset.

* As of 1023 GMT, spot gold was up 0.6% at $1,931.12 an ounce, adding 3.5% for the week, on track for its third consecutive weekly gain. U.S. gold futures rose 0.7% to $1,935.80.

* Gold benefited this week from safe-haven trade and a weaker dollar, said Ricardo Evangelista, senior analyst at ActivTrades, adding that the move in Europe to raise interest rates was weighing negatively on the dollar, contributing to the strength of the gold metal.

* A weaker dollar, on track for a 0.5% decline for the week, makes bullion more attractive as it makes it cheaper for holders of other currencies.

* The European Central Bank raised rates by 50 basis points on Thursday, keeping pace with its tightening to contain inflation despite the banking turmoil.

* The failure of Silicon Valley Bank in the United States exposed the vulnerability of banks to a rate hike, while the fall in Credit Suisse shares added to market turmoil.

* “We need to watch what the Fed is doing (next week)…a 25 basis point rate hike is already on the cards, but it will be interesting to see what guidance (Fed Chairman) Jerome gives us in Powell later “, said Evangelista. .

* In other precious metals, spot silver rose 0.4% to $21.80 an ounce; Platinum rose 0.6% to $979.07; and palladium rose 0.3% to $1,434.35. All three metals were on track for weekly gains and silver was on course for its best week since early December.

(Edited in Spanish by Carlos Serrano)