Gold prices hit a stunning new record of $4,378 an ounce in a classic “risk-off” move by investors fleeing a tumbling stock market. The panic was ignited by new fears over the stability of the US banking sector.
The anxiety began after two regional lenders, Zions and Western Alliance, reported multi-million dollar bad loans. This news, while small, sparked fears of a wider, systemic problem, drawing comparisons to the 2023 SVB collapse.
The sell-off in equities was global. Bank stocks were hit hardest, with European lenders losing €37.4 billion in value. Barclays and Deutsche Bank were among the biggest fallers. Asian markets like the Nikkei and Hang Seng also dropped sharply.
The VIX “fear index” surged over 22%, confirming the deep-seated anxiety. Analysts warned of “storm clouds gathering” as the market grapples with the impact of high interest rates on credit quality.