Spot Gold rose on Monday, reversing a loss from Friday, on the back of a softer US Dollar amid renewed trade tensions.
US Treasury Secretary Scott Bessent said over the weekend President Donald Trump would impose tariffs at the rate he pledged in April on trading partners, who do not negotiate in “good faith”.
A softer US Dollar was also providing support to the commodity. The US Dollar Index was last down 0.32% to 100.657.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Last week, Gold retreated more than 3.5%, its largest weekly loss since early November 2024, following the US-China trade agreement.
Moody’s lowered US’ top sovereign credit rating by one notch (from Aaa to Aa1) last week, as the agency cited concerns over the country’s rising debt. The downgrade placed Moody’s assessment in line with the other major credit rating firms.
“The Moody’s downgrade of the U.S. credit rating, and the corresponding risk-off reaction by the market, has put some pep back into the gold price,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
Market participants are now setting their focus on upcoming public comments from several Federal Reserve officials, including Raphael Bostic, John Williams and Lorie Logan.
Spot Gold was last up 0.79% on the day to trade at $3,229.65 per troy ounce.
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