Gold gains 1% as trade tensions flare

Gold bars

Gold prices rose on Monday as the US dollar weakened and renewed trade tensions boosted demand for safe-haven assets, following a credit rating downgrade by Moody’s Investors Service.

June gold futures climbed more than 1%, or $33.9, to $3,221.1 an ounce.

Spot gold was up 0.5%, or $16.08, at $3,219.73 an ounce by 08:12 a.m. Mecca time (05:12 GMT).

The US dollar index, which tracks the greenback against a basket of six major peers, fell 0.25% to 100.81.

Silver futures for July delivery rose 0.5% to $32.52 an ounce. Spot platinum added 0.4% to $995.21, while palladium gained 0.5% to $969.5.

US Treasury Secretary Scott Bessent said in televised interviews on Sunday that President Donald Trump would impose tariffs at the rate he threatened last month on trade partners that do not negotiate “in good faith,” according to Reuters.

The remarks came after Moody’s downgraded the US credit rating to "Aa1" from "AAA" on Friday, becoming the last major rating agency to strip the country of its top rating, citing concerns over rising debt levels.