Gold Down as Safe-haven Demand from Moody’s Downgrade Fades
Gold fell as safe-haven demand from Moody’s downgrade for the U.S. faded, and attention turned back to easing trade tensions between the world’s two largest economies. Bullion fell 0.5% to around $3,212 an ounce, erasing some of Monday’s gains. There was a general risk-on tone in broader financial markets, with shares in Asia tracking Wall Street higher, which is negative for gold, which usually benefits from economic pessimism.
The precious metal rallied sharply earlier in the year as U.S. President Donald Trump’s aggressive trade policies rattled global markets, but those gains have reversed this month as he has paused 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 0.5% at $3,211.88 an ounce as of 12 p.m. in Singapore. The Bloomberg Dollar Spot Index was flat after dropping 0.6% on Monday. Silver fell, while platinum and palladium edged up.
Source: Bloomberg
