Gold prices continue to rise as investors look for safe haven assets amid fears of further market volatility following Silicon Valley Bank’s collapse and the Swiss government’s emergency loan for Credit Suisse.

The precious metal was trading at $1,936 on Friday afternoon, having started the day at $1,921 – reflecting a hefty bump-up over the week from its opening position of $1,879 per ounce on Monday.

Investors typically turn to gold as a flight to safety option amid concerns of market instability, with fears of contagion across the US banking sector.

The asset has survived as an investment option through periods of vast instability such as multiple stock market crashes, wars and pandemics.

As it stands, US banks are teaming up up to shore up First Republic Bank with $30bn in deposits after the collapse of first Silvergate, then Silicon Valley Bank and Signature.

Craig Erlam, senior market analyst at Oanda said: “The question on traders’ lips now is whether fear is baked in, meaning yields could pare declines as (if) the dust settles, which could be a near-term headwind for gold, or if the turbulence is just getting started. Time will tell but further fallout could see gold move closer to February highs, around $1,960, with $2,000 then key above that.”

There is speculation the US Federal Reserve could ease off planned interest rate hikes, which would further boost gold.

However, Rupert Rowling, market analyst at Kinesis Money, is less convinced.

He said: “It is worth noting that the European Central Bank still did increase its benchmark rate by 50 basis points, as was originally expected, and didn’t choose to alter its approach with the troubles Credit Suisse is facing reminding investors that this isn’t a uniquely American problem. “

“As such, this increases the likelihood of the Federal Reserve also sticking to its plan of another hike when it meets next week so with rates continuing to rise that is likely to put a cap on how gold can climb.”