Gold recovered some of Friday’s losses, rising as safe-haven demand was buoyed by the downgrade of the US credit rating by Moody’s.
The agency’s decision weighed on the US dollar’s modest position and pulled XAU/USD above $3,200.
At 9.20am, gold was at $3,225.74, unchanged since it opened early Tuesday in Asian trading.
The decision underscored the fact that more than a decade of inaction by the US administration and Congress has contributed to the country’s worsening fiscal position, raising concerns about the sustainability of its long-term debt.
The US Dollar Index (DXY), which tracks the performance of the US currency against six others, fell 0.47% to 100.50.
While it held off a daily low of 100.06, investors are still seeking safety and are turning to the yellow metal.
Additionally, US Treasury Secretary Scott Bessent said on Sunday that April 2 tariffs imposed on several countries could be reimposed if they do not negotiate favorable terms.
