The U.S. dollars declined on Monday, while gold and other precious metals rose, after Moody’s downgrade of the U.S.’ credit rating last Friday.
Moody’s cited the rise of government debt and interest payment ratios to lower the U.S.’ score from Aaa to Aa1. Afterward, the dollar fell by 0.6% while stock futures slid. The gold, however, increased to about $3,240 an ounce.
Gold price has been on a swing lately. When the U.S. announced tariffs last month, the market became volatile and pushed gold value above $3,500. However, its price went down after the U.S. began negotiating with China, easing the trade war tension.
Vasu Menon, official from Oversea-Chinese Banking Corp, stated that gold price would go up and down for the short term but in the long term, the U.S. policies and its attempt to move away from dollar-denominated assets could push the gold value to the new record.
