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 prices edged higher as investors reacted to a weaker U.S. dollar, upcoming Fed rate decisions, and growing interest in U.S. tariff policy and Russia-Ukraine peace talks. Spot gold rose to $3,236.

"The Moody’s credit downgrade of the U.S. was a major source of uncertainty and investor angst to start the week and subsequently proved to be a bullish influence on gold as safe-haven money flows picked up considerably,

DXY rebounds but stays vulnerable as Moody’s downgrade, debt concerns, and rising gold prices challenge the dollar’s reserve currency strength.

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.

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?

Gold edges lower as haven demand from Moody’s downgrade fades "Today, gold is trading below $3,215 per ounce, as Trump said Ukraine and Russia would “immediately st