Gold prices soar, rising to the highest level since early February, boosted by falling bond yields and risk-off mood as the U.S. banking sector woes fail to dissipate.

The South African Rand has surrendered weekly gains after fears over the US banking system ease, supporting a resilient Dollar. USD/ZAR remains uncertain ahead of FOMC.

US stocks responded favorably after assurances in the banking sector were put forward by the Federal Reserve, along with a show of confidence by large US banks

The Euro is pushing higher against a range of currencies as a group of ECB policy makers observe that inflation remains too high and that the central bank will have to hike interest rates further.

Cable enjoyed a strong bounce yesterday helped by improving sentiment and a weaker US Dollar. Weekly high around 1.2200 may cap gains ahead of a next week’s key data releases.

The gold price remains elevated today as the markets assess the implications of the latest rescue package for another bank in crisis mode. If the US Dollar recovers, will XAU/USD go lower?

Crude oil prices traded flat on Thursday amid competing fundamental headlines. While financial sector volatility cooled, markets also priced out some Fed rate cut bets.