Gold prices fell for a second straight session on Monday as the US 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. US 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 Bank’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 safe-haven 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 US lenders, but has since pulled back from those levels after rescue measures by authorities, including UBS’ 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 follow-on credit crunch brings the United States closer to recession, Minneapolis US Federal Reserve President Neel Kashkari said.

The threat of a recession has resulted in investors increasing their allocation to the precious metal in droves, ANZ said in a note.

Gold eases from key $2,000 level as dollar rises

Markets are pricing in a 70% chance of the Fed standing pat on interest rates at its May meeting, according to the CME FedWatch tool.

While gold is considered a hedge against inflation and economic uncertainties, higher interest rates discourage investment in non-yielding bullion. Spot silver shed 1% to $22.99 per ounce, platinum lost 0.7% at $970.51 and palladium slipped 0.9% to $1,402.79.