FX.co ★ Gold Tumbles As Risk Sentiment Improves

Gold prices fell sharply on Monday and the dollar held steady after authorities and regulators gave assurances that the broader financial system is sound.

Spot gold fell 1.2 percent to $1,955.51 per ounce, while U.S. gold futures were down 1.4 percent at 1,973.50.

European stock markets traded sharply higher after the 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.

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

Elsewhere, 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.