Gold fell due to falling demand, as concerns about the banking crisis receded

Gold prices fell on Wednesday as appetite for riskier assets increased following easing fears of a widening global banking crisis.

Spot gold fell 0.6% to $1,961.80 an ounce by 0749 GMT, after rising 1% on Tuesday. US gold futures fell 0.5 percent to $1,963.10.

However, he added that some investors “still seem to be holding on to gold ‘in anticipation’ of other mysteries.”

The dollar index rose, which raises the price of the precious metal for buyers holding other currencies. Asian stocks jumped on Wednesday.

Simpson said that although gold will “ultimately” be supported by uncertainty in financial markets, prices may become more volatile in the coming weeks if inflation and US economic data remain on the rise.

Data on Tuesday showed US consumer confidence rose unexpectedly in March, while the US goods trade deficit increased modestly in February.

As for other precious metals, silver fell 0.5 percent to $23.15 an ounce, platinum fell 0.1 percent to $962.05, and palladium lost 0.3 percent, recording $1,414.64.