Gold prices fell as the dollar dropped and safe-haven demand returned after Moody's downgraded the U.S. government's credit rating due to ballooning debt and deficits.

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

Gold prices edged higher as investors reacted to a weaker U.S. dollar, upcoming Fed rate decisions, and growing interest in U.S. tariff policy and Russia-Ukraine peace talks. Spot gold rose to $3,236.

Gold prices have exhibited volatility amidst global economic uncertainties, including concerns over US trade policies and

Gold prices rose on Wednesday to their highest levels in a week as the dollar weakened and investors sought safety amid U.S. fiscal uncertainty, with Congress debating a sweeping tax bill.

Gold price rises as dollar weakens, Moody’s downgrade fuels demand. Traders eye breakout above $3,238 for bullish momentum in XAU/USD.

The debt downgrade does nothing to impair the reserve currency status of the U.S. dollar. Given the massive short position on U.S. Treasuries, bond buyers could see a significant drop in yields and a rise in bond prices, particularly if this coincides with the onset of a recession or Fed rate-cutting cycle.