Gold logs highest close in 11 months, still below $2,000

Gold prices rose to the highest close since April 2022 today, March 20, as the banking crisis continues to push investors toward safe havens, ahead of the Federal Reserve’s monetary policy decision this week.

On March 19, Switzerland’s largest bank, UBS, agreed to buy its embattled rival Credit Suisse in a historic CHF 3 billion ($3.2 billion) deal, with Swiss regulators playing a key part in the acquisition as governments looked to stem a contagion threatening the global banking system.

Following the announcement, the US Federal Reserve, European Central Bank (ECB) and other major central banks pledged to enhance market liquidity and support other banks.

Elsewhere, the Fed will hold its monetary policy meeting on March 21-22, amid expectations of a 25-basis-point interest rate hike.

In terms of trading, gold for April delivery ended 0.5% higher at $1,982.80 an ounce, trimming its gains of $2,014.90 earlier in the session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, shed 0.3% to 103.34 points at 9:19 pm Makkah time.