2023.03.2718:05:00UTC+00Gold Futures Settle Lower Again

Gold prices drifted lower on Monday, extending losses from the previous session, as demand for the safe-haven metal dropped after global equities rallied amid easing concerns about banking crisis.

A weak dollar helped limit the yellow metal's downside. The dollar index dropped to 102.88, losing about 0.22%.

Gold futures for April ended lower by $30.00 or about 1.5% at $1,953.80 an ounce.

Silver futures for May ended down $0.194 at $23.145 an ounce, while Copper futures for May settled at $4.0785 per pound, up $0.0035 from the previous close.

Global stocks rallied after Federal Deposit Insurance Corp. or FDIC announced an agreement, under which First-Citizens Bank & Trust Co., affiliated to First Citizens BancShares, Inc., will buy all deposits and loans of Silicon Valley Bridge Bank, N. A. out of FDIC receivership.

Sentiment was also underpinned after U.S. Fed officials said there was no indication that financial stress was worsening.

The U.S. Financial Stability Oversight Council said the U.S. banking system was "sound and resilient" despite stress on some institutions.

St. Louis Federal Reserve President James Bullard said on Friday that the stress in the banking sector will abate, and the Fed needs to push interest rates higher than previously expected.

German Chancellor Olax Scholz said during a news conference in Brussels that Deutsche Bank remains profitable and there's no reason to doubt its future.