Gold Gains Momentum Amid U.S. Credit Downgrade and Safe-Haven Rush
Friday, June 13th 2025
Gold prices surged on Monday, buoyed by increased demand for safe-haven assets and a weaker U.S. dollar following a downgrade of the United States’ credit rating by Moody’s.
Moody’s Downgrade Sparks Market Caution
Moody’s Investors Service lowered the U.S. credit rating from “Aaa” to “Aa1” on Friday, citing concerns over rising national debt and elevated interest payments compared to other top-rated countries. This move prompted renewed interest in gold as a reliable store of value.
“Considering the downgrade, gold continues to look like a solid buy-and-hold asset over the next few months,” said Bob Haberkorn, senior market strategist at RJO Futures.
Gold Prices Climb as Dollar Weakens
By 1:15 PM ET (1715 GMT), spot gold climbed 0.9% to $3,229.51 per ounce, while U.S. gold futures ended the day up 1.5% at $3,233.50. The U.S. dollar index slipped to its lowest level since early May, making gold more affordable for investors using other currencies.
Wall Street also reflected the cautionary mood, with major indexes edging lower.
Geopolitical Concerns Add to Gold’s Appeal
Further adding to gold’s allure, U.S. Treasury Secretary Scott Bessent warned that President Donald Trump is prepared to enact previously threatened tariffs if global trade partners fail to negotiate in “good faith.” Such developments have heightened economic uncertainty, often a bullish factor for gold.
Meanwhile, President Trump and Russian President Vladimir Putin held talks on the Ukraine conflict, with Putin signaling progress toward a potential peace agreement.
Gold Outlook: Analysts Stay Bullish
Goldman Sachs maintained its bullish forecast for the metal, predicting a year-end target of $3,700 per ounce and a mid-2026 estimate of $4,000 per ounce. The bank cited steady, albeit limited, diversification into gold by the private sector as a supporting factor.
Gold has already gained over 23% in 2025, reaching multiple all-time highs amid rising global tensions and economic instability.
Precious Metals Round-Up: Silver, Palladium, and Platinum Trends
- Silver: Spot prices edged up 0.3% to $32.36 per ounce.
- Palladium: Gained 1.1%, reaching $998.26.
- Platinum: Demand in China for platinum jewelry is rebounding after a prolonged decline, contributing to a steeper-than-anticipated global deficit, according to the World Platinum Investment Council.
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