Daily Gold Market Report

Banking Sector Facing Mounting Risks:
FDIC Report Highlights Industry Trends

(USAGOLD – 3/8/2024) Gold prices to finish the week, are hovering slightly below session peaks around $2,185 per ounce following a weak jobs report. Gold is trading at $2170.89, up $11.18. Silver is trading at $24.28, down 5 cents. The FDIC’s Quarterly Banking Profile, released yesterday, revealed an increase in its “Problem Bank List” by eight banks to a total of 52, representing 1.1% of the institutions under its oversight and totaling $66.3 billion in assets. Noteworthy statistics from this report include a rise in the share of unprofitable institutions to 10.9%, the highest level since Q4 2017. Additionally, 70% of the quarterly profit decline was attributed to specific, non-recurring large bank expenses, such as a special assessment to recoup failed bank costs. US bank profits saw a significant drop of 44% in Q4 as major firms covered failed bank costs. Meanwhile, embattled lender NYCB secured a $1 billion investment to bolster its financial position. Real Estate RXR CEO Scott Rechler predicts hundreds of banks failing or being taken over by 2026, highlighting the potential risks and challenges facing the banking sector in the years ahead.