Gold closes with 1% gain amid financial markets volatility

Gold ended in the green today, March 15, as the panic over the US and European banking systems escalated.

Investors flocked to acquire safe-haven assets such as bullion. This is as fears mounted over the situation of troubled Credit Suisse, alongside the continued assessment of the repercussions of the collapse of three US banks in the past days.

However, financial markets reverted to expectations that the Federal Reserve is likely to decide on a rate hike when policymakers meet on March 21-22.

This is against the backdrop of the recent sharp market fluctuations, as the drama that swept the banking and financial sectors over the weekend is drastically shaking up forecasts for what the US central bank will deliver.

Today's data showed that the US Producer Price Index (PPI) fell by 0.10% in February, below estimates for a 0.30% increase, and down from the 0.30% rise in the month before.

At settlement today, gold for April delivery leapt 1.60%, or $20.40, to $1,931.30 per ounce.

Likewise, the US dollar index, which gauges the greenback's strength against a basket of six currencies, spiked by nearly 1.20% to 104.86 points at 8:52 pm Makkah time.