Gold surges and copper slumps as SVB sparks flight to havens
BNN Bloomberg
Gold extended gains and copper dropped as the collapse of Silicon Valley Bank soured risk sentiment and curbed expectations for more aggressive rate hikes by the Federal Reserve.
The second-largest collapse of an American lender in history has sparked nervousness about potential spillover effects across the financial system and prompted U.S. officials to move to protect depositors' funds on Sunday. Global stocks slumped on Monday, with copper dropping to a two-month low as it tracked the broader move in risk assets, while gold topped US$1,900 an ounce.
The bank failure has also driven a massive shift in expectations for more hikes by the Fed, with swaps markets now seeing no more increases this year as the most likely outcome. Benchmark 10-year Treasury yields plunged to the lowest in over a month, supporting bullion.
