The banking crisis will drive up gold prices even further

Deutshe Bank's shares was down 14% at one point on Friday.

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After reaching a high of $2,006.50 earlier in the session, gold was down roughly $15 for the day. After its largest gains in three years last week, gold is continuing to rise, approaching the $2,000 per ounce mark several times this week. April Comex gold futures were trading at $1,980.50 at the time of writing, down 0.77% on the day.

SJC gold bar prices in Vietnam rose to more over 67 billion VND per ounce in accordance with global gold price movements.

Gold prices began to fall on Friday as preliminary manufacturing and service-sector mood data for March exceeded expectations. The flash manufacturing Purchasing Managers' Index (PMI) in the United States increased to 49.3, a five-month high. In the service sector, the PMI score increased to 53.8 in March, an 11-month high.

Meanwhile on Friday, St. Louis Fed President James Bullard stated that when the banking sector's stress eases, the Federal Reserve will have to boost interest rates even higher. Bullard remained hawkish in response to improving economic news and on the premise that financial stress will ease in the coming weeks and months. He increased his terminal rate prediction to a range of 5.50%-5.75%.

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Once UBS purchased Credit Suisse for more than $2 billion and several American banks failed, the financial crisis might spread to many nations.

Gold prices have risen beyond $2,000 per ounce.

Deutshe Bank's shares was down 14% at one point during the day, but it recovered to settle 8.6% down on Friday afternoon. The Frankfurt-listed shares of the German lender fell for the third day in a row, losing more than a fifth of their value so far this month. Credit default swaps, a type of insurance for bondholders against a company's default, jumped to 173 basis points Thursday night, up from 142 basis points the day before.

During the 2008 financial crisis, European banks were forced to undergo extensive restructuring and considerably strengthen their balance sheets.

Yet, the EU remains relatively vulnerable to shocks since it has monetary inside the eurozone, where 20 members share the euro, but no fiscal unity. Individual governments, rather than a single entity, are still in charge of fiscal policy.

According to Mr. Colin, an FX expert, the financial crisis might push gold prices to new highs. On the way up, the levels to monitor are $2,034, the record-high weekly close, and then $2,075. This opens the door to $2,150.