Gold prices dipped consecutively for a second session on Monday as the US dollar strengthened and investors assessed steps taken by authorities to calm worries about a global financial crisis.

As of 06:32 GMT, spot gold was down 0.5% at $1,967.86 per ounce. Gold futures in the United States fell 0.8% to $1,968.90.

The dollar index grew 0.2%, making bullion less cheap for foreign buyers.

The Federal Deposit Insurance Corporation will sell all of Silicon Valley Bank’s deposits and loans to First Citizens BancShares Inc. On Monday, the news cast an uncomfortable calm over the weak markets.

“Markets continue to adopt a cautious stance… On net, the mix of growth worries, lingering concerns of banking stresses could benefit safe-haven proxies such as USD, JPY and gold in the interim,” stated OCBC FX strategist Christopher Wong.

Gold had soared above the $2,000 mark after the sudden downfall of two U.S. lenders but has subsequently fallen back amid government rescue attempts, including UBS’ acquisition of struggling Credit Suisse.

However, concerns remained that authorities had failed to manage the greatest shock to the banking industry since the 2008 financial crisis, following the collapse of Deutsche Bank shares on Friday.

Recent sector stress and the risk of a secondary credit crisis push the United States closer to recession, according to Minneapolis Federal Reserve President Neel Kashkari.

The danger of a recession has caused investors to increase their allocation to gold in large numbers, according to an ANZ report.

According to the CME FedWatch tool, markets are pricing in a 70% likelihood of the Fed holding interest rates steady at its May meeting.

While gold is seen as a safe haven against inflation and economic uncertainty, rising interest rates discourage investment in non-yielding metal.

Spot silver dipped 1% to $22.99 per ounce, platinum plunged 0.7% to $970.51 per ounce, and palladium collapsed 0.9% to $1,402.79.