Gold News: Gold Surges Near $2,000 as Investors Seek it out as their safe-haven

Gold is currently approaching the $2,000 mark per ounce as the ongoing repercussions of the banking industry have caused a significant flow of funds into gold, whose intrinsic safe-haven characteristics have withstood numerous stock market crashes throughout history.

UBS's abrupt agreement to acquire Credit Suisse over the weekend may provide some relief to the markets, but following the collapse of three American banks, and assistance to a fourth, gold will continue to be the preferred asset until investors are more confident that no other financial institutions are vulnerable to risk.

Gold has become increasingly popular amidst the turmoil in the banking sector due to its lack of counterparty risk, making it highly appealing when large depositors of failed banks are anxious about the amount of money they will be able to recover. In contrast, physical gold's tangible nature is highly sought-after when compared to money held in an account.

Gold's potential for further gains will primarily depend on how many more financial institutions require government bailouts or go under in the next few days, as well as the Federal Reserve's interest rate decision when the committee meets later this week.

If the Federal Reserve maintains its composure and raises rates by another 25 basis points, it may moderate the gold rally. However, a pause by the US central bank will provide an opportunity for continued gold appreciation and could challenge last year's highs.