Gold down for 2nd session in a row
Growth worries, banking stresses could benefit gold analyst
U.S. dollar up 0.2

March 27 Reuters Gold prices fell for a second straight session on Monday as the U.S. dollar firmed, while investors weighed measures taken by authorities to assuage fears of a crisis in the global banking sector.

Spot gold was down 0.5 at 1,967.86 per ounce, as of 0632 GMT. U.S. gold futures slipped 0.8 to 1,968.90.

The dollar index rose 0.2 and made bullion less affordable for overseas buyers.

First Citizens BancShares Inc will acquire all of Silicon Valley Bank39;s deposits and loans from the Federal Deposit Insurance Corporation. The news cast an uneasy calm over fragile markets on Monday.

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

Gold had risen above the 2,000 mark after the sudden collapse of two U.S. lenders, but has since pulled back from those levels after rescue measures by authorities, including UBS39; takeover of ailing Credit Suisse.

However, worries persisted that regulators are yet to contain the worst shock to the banking sector since the 2008 financial crisis after shares of Deutsche Bank plunged on Friday.

Recent stress in the sector and the possibility of a followon credit crunch brings the United States closer to recession, Minneapolis…