NEW YORK: Gold continued to decline for the second day on Tuesday after rising above $2,000 an ounce in the last session, as investors turned their attention from the banking crisis to the US Federal Reserve’s interest rate decision.

Spot gold was down 0.6% at $1,967.17 per ounce, as of 0912 GMT, while U.S. gold futures slipped 0.6% to $1,970.30.

The metal had hit $2,009.59 an ounce on Monday, its highest since March 2022, before pulling back to $1,978.71.

Bullion has gained over $100 after the collapse of

US-based Silicon Valley Bank earlier this month, as investorsscrambled for the safe haven.

European shares rose nearly 1%, with banking stocks leading the recovery, following a raft of measures to stabilise the sector, while investors hoped for less aggressive moves by the Fed. There is some caution in the market ahead of the Fed rate decision, said Michael Hewson, chief market analyst at CMC Markets.

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