Gold prices went up after falling a lot last week. This happened because people are worried about the US economy and the growing government debt.
Gold increased by about 1.3%, reaching around $3,245 per ounce in early trading in Asia. This rise came after Moody’s Ratings lowered the US government’s highest credit rating from Aaa to Aa1 on Friday. Moody’s said this was because US leaders have not been able to reduce the budget deficit.
Moody’s explained, “Although the US has strong economic and financial power, these strengths don’t fully make up for the worsening budget situation.”
Gold prices have been changing a lot recently. Last week, gold had its biggest weekly drop since November because tensions between countries eased. This came after a strong rise in gold prices, which went over $3,500 an ounce for the first time last month. Despite recent ups and downs, gold is still up by more than 20% this year, helped by global conflicts, US tariffs, and investments in gold funds.
Vasu Menon, a senior investment expert, said gold will likely be unpredictable in the short term because of mixed news. But in the long term, he believes policies by US President Donald Trump and people looking to invest outside the US dollar will keep pushing gold prices higher.
At 8:46 a.m. in Singapore, gold was trading 1.3% higher at $3,245.67 per ounce. The US dollar also got slightly weaker. Other metals like silver, palladium, and platinum also went up in price.
