Gold firms on safe-haven demand after Moody's US downgrade
Gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the U.S. government's credit rating.
Spot gold rose 0.9% to $3,229.51 an ounce by 1315 ET (1715 GMT).
Gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the U.S. government's credit rating.
U.S. gold futures settled 1.5% higher at $3,233.5.
Moody's cut the United States' rating to "Aa1" from "Aaa" on Friday, citing rising debt and interest "that are significantly higher than similarly rated sovereigns".
"Overall, over the next few months, I think gold is a good safe bet considering the downgrade on the United States. It's still to me a buy-and-hold market," said Bob Haberkorn, senior market strategist at RJO Futures.
The U.S. dollar index (.DXY), hit its lowest level since May 8, while Wall Street's main indexes slipped. A weaker U.S. currency makes gold less expensive for other currency holders.
Financial markets were also rattled a bit when U.S. Treasury Secretary Scott Bessent said on Sunday that President Donald Trump will impose tariffs at the rate he threatened on April 2 if trading partners did not negotiate in "good faith".
Gold, which is considered a safe asset amid geopolitical and economic uncertainties, has hit multiple record highs this year and is up 23.1% so far this year.
Goldman Sachs maintained its gold price forecast of $3,700/toz by year-end and $4,000/toz by mid-2026 in part because of a very modest amount of private sector diversification into gold.
Elsewhere, Russian President Vladimir Putin, after a call with Trump on Monday, said that efforts to end the war in Ukraine were on the right track and that Moscow was ready to work with Ukraine on a memorandum about future peace accord.
Spot silver added 0.3% to $32.36 an ounce, while palladium was 1.1% up at $998.26.
Demand for platinum jewellery in China is rebounding after a decade-long decline, contributing to a deeper-than-expected global platinum deficit this year, the World Platinum Investment Council said.
Source : Reuters
