Gold Down as Safe-haven Demand Fades from Moody’s Rating Downgrade
Gold fell slightly as safe-haven demand faded from a Moody’s rating downgrade for the U.S., and attention turned back to easing trade tensions between the world’s two largest economies.
Bullion was trading around $3,220 an ounce after rising 0.8% on Monday. There was a general risk-on tone in broader financial markets, with shares in Asia poised to follow Wall Street higher, a negative for gold, which typically benefits from economic pessimism.
The precious metal rallied early in the year as President Donald Trump’s aggressive trade policies rattled global markets, but its gains have reversed in May as he halted or walked back many of his tariff threats. Still, gold is up more than a fifth this year, and is unlikely to suffer a sharp decline given the uncertainty Trump has injected into the global economy.
Gold was down 0.3% at $3,220.75 an ounce at 8:16 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1% after dropping 0.6% on Monday. Silver was steady, while platinum and palladium advanced.
Source: Bloomberg
