One of the most significant of these events was the takeover of Credit Suisse by UBS, which sent shockwaves through the financial industry over the weekend. This has led to increased uncertainty and a greater sense of unease among investors, who are struggling to understand the full implications of this latest development.
Despite this, gold has remained resilient, reaching a new UK record of £1,648.64 per ounce on Monday, before retreating slightly as calm returned to the markets. The latest round of interest rate decisions by central banks around the world has brought renewed volatility to the market, however, and reignited fears that the global financial crisis is far from over.
In response to the uncertainty caused by the Fed's latest interest rate hike, the price of gold has risen back up to $1,980 per ounce. This comes after the Fed signaled that further rate hikes may not be necessary, given the recent economic turbulence, which is seen as a form of fiscal tightening in its own right.
Meanwhile, the Bank of England has also decided to raise interest rates by .25 percentage points, following an unexpected increase in UK inflation last month. This has left the BoE with a difficult decision on whether to raise borrowing costs further, given the ongoing fragility of the financial system.
Despite the stronger pound, however, gold remains above £1,600 per ounce and continues to look strong. In fact, silver has also seen gains, reaching a high of £18.80 / $23.11 per ounce today, which is the highest it has been in over a month.
At the same time, there are concerns that the global financial system remains fragile, and that more collapses could be imminent. In particular, there are fears that First Republic could be the next domino to fall, which would put even greater pressure on an already weakened system.
Given this backdrop of uncertainty and fragility, it is clear that gold and silver continue to be a safe haven for investors. This is particularly true given the ongoing volatility in financial markets, which has left many investors feeling uneasy and uncertain about the future.
Ultimately, it remains to be seen whether gold and silver will continue to rise in the weeks and months ahead, or whether they will face renewed selling pressure as the global economic picture becomes clearer. However, for now, it is clear that investors are flocking to these precious metals as a way of hedging their bets and protecting their portfolios in a time of great uncertainty.