Gold Spot Prices Increased 8 Percent since Collapse of Silicon Valley Bank on March 10 and Last Traded around $2,027/Oz

Gold prices are trading near record highs as ongoing banking turmoil, looming U.S. debt ceiling troubles and the de-dollarization fuel demand for the precious metal.

Gold's high on the day was $2,051 an ounce – just 21 cents shy of an all-time high of $2,072 an ounce.

This might not be the end of the story yet, as the looming U.S. debt default triggers a lot of nervousness across many markets. U.S. Treasury Secretary Janet Yellen said on Monday, that “Failure to raise the U.S. debt ceiling would cause an “economic catastrophe”.

“That is something that could produce financial chaos, it would drastically reduce the amount of spending and would mean that Social Security recipients and veterans and people counting on money from the government that they’re owed, contractors, we just would not have enough money to pay the bills,” she said.

The de-dollarization movement has also supported gold's recent gains, according to a report from the World Gold Council last week. The World Gold Council noted that in Q1 2023 world central banks bought a record 228 tons of gold, as countries including Brazil, China and Russia tackled to reduce their dependence on the U.S. dollar.