REUTERS

Gold prices rose more than 1 percent on Monday, helped by a weaker dollar and safe-haven demand after Moody’s downgraded the US government’s credit rating amid lingering trade concerns.

Spot gold was at $3,234.41 an ounce at 0839 GMT, reversing the previous session’s losses. US gold futures gained 1.6 percent to $3,237.70.

“Gold has rebounded above the $3,200 level after a negative week as appetite for safe haven assets is increasing due to worries about the US economic outlook,” said Carlo Alberto De Casa, external analyst at Swissquote.

Moody’s cut the United States’ top sovereign credit rating by one notch on Friday, the last of the major ratings agencies to downgrade the country, citing concerns about its growing $36 trillion debt pile.

The dollar slipped 0.7 percent against a basket of other major currencies, making greenback-priced gold cheaper for overseas buyers.

US Treasury Secretary Scott Bessent said in television interviews on Sunday that President Donald Trump will impose tariffs at the rate he threatened last month on trading partners that do not negotiate in “good faith”.

Meanwhile, soft economic data out of China also weighed on risk sentiment in the wider financial markets. Gold, often used as a safe store of value in times of political and financial uncertainty, rose to an all-time high of $3,500.05 per ounce on April 22 and is up 22 percent so far this year.

“We maintain our gold price forecast of $3,700/oz by year-end and $4,000/oz by mid-2026, despite delayed Fed cuts and lower US recession risk,” Goldman Sachs said in a note.