Gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the U.S. government's credit rating. Spot gold rose 0.9% to $3,229.51 an ounce by 1315 ET (1715 GMT).

Gold, silver, and platinum rally as dollar weakness, rising yields, and deficit fears fuel safe-haven demand. Breakouts loom across all three metals.

Gold prices surged as political tensions in the U.S. and a weakening dollar drove investors toward safer assets. Uncertainty around President Trump's tax bill and concerns over national debt further fueled the rally.

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.

Investors will get the first chance to react to Moody’s downgrade of the U.S. credit rating late Friday over rising government debt and they’ll also look for more progress from President Trump on trade deals as the week kicks off.

Gold prices edged higher on Monday, finding support from escalating concerns over the US economic outlook and its burgeoning budget deficit, which bolstered the appeal of traditional haven assets.

So, Moody’s downgraded U.S. sovereign credit rating from AAA to AA1, which means that the U.S. debt is no longer top-rated. This was the last of the major agencies to cut this rating. What does it change?

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.