Investors flock to gold amid banking worries and risk-off sentiment

Investors are rushing into gold late Friday due to fears of a potential banking crisis over the weekend, driving prices up more than 3% to a one-year high of $1,988.80 an ounce. Analysts attribute the surge to classic demand for a safe-haven asset and short-covering. Silver is also outperforming gold due to its potential for speculative positioning. The risks of a banking crisis can also be seen in gold-backed exchange-traded products, with 16 tonnes of gold flowing into global ETFs this week, valued at $1 billion, reversing ten consecutive weeks of outflows.