WASHINGTON (dpa-AFX) - Gold prices climbed to a six-week high on Monday as the dollar fell and bond yields dropped following the collapse of the Silicon Valley Bank.
The sell-off in equities and rising concerns over the fallout of the collapse of SVB pushed up the demand for the safe-haven yellow metal.
The U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation said they would 'fully protect' depositors, including those with assets above the federally guaranteed $250,000 limit, but traders still went on a selling spree.
The dollar index plunged to 103.48, losing about 1.05%.
The yield on the 10-year Treasury note dropped to around 3.47%.
Gold futures for April surged $49.30 to $1,916.50 an ounce.
Silver futures for May climbed to $21.848 an ounce, gaining $1.4170, while Copper futures for May advanced $4.0535 per pound, up $0.0230 from the previous close.
The spotlight is firmly on Tuesday's U.S. inflation data and Thursday's ECB meeting. The central bank is all set to raise interest rates by another 50 basis points at the meeting.
The Federal Reserve's policy meeting is scheduled to be held on March 21-11, while the Bank of England meets a day after the FOMC meeting on March 23.
Goldman Sachs analysts said they no longer expect the Federal Reserve to raise rates by 25 basis points at its next policy meeting on March 21-22.
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