US Banking Crisis Sparks Policy Uncertainty, Dollar Weakness
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Three US banks with tech/crypto exposure suffer bank runs, revealing balance sheet issues. Silicon Valley Bank seized by FDIC.
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Banking crisis changes expectations for Fed interest rate hikes due to stress on banks. Previously expected more hikes to combat inflation.
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US Dollar falls as possibility of Fed policy pivot is priced in. Higher rates seen as US Dollar positive.
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Banking crisis bullish for gold due to safe haven demand, lower rate hike expectations reducing opportunity cost, and US Dollar weakness.
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Information involves risks - losses possible. Author has no position in any stock mentioned.