Gold price drifts lower to near $3,230 in Tuesday’s early Asian session.
The modest US Dollar recovery weighs on the yellow metal.
Moody’s announced its downgrade of the US credit rating to Aa1, which might help limit the Gold’s losses.
The Gold price (XAU/USD) edges lower to around $3,230 during the early Asian session on Tuesday, pressured by a modest US Dollar (USD) rebound. However, the concerns over the US economic health after Moody's downgrades the US national credit rating might cap its downside.
The Greenback recovers on Tuesday, capping the upside for the USD-denominated commodity price. Nonetheless, the economic uncertainties could boost the safe-haven flows. Moody's cut the US rating to "Aa1" from "Aaa" on Friday, citing rising debt and interest "that are significantly higher than similarly rated sovereigns”. The economic uncertainties provide some support to the safe asset like Gold.
"Overall, over the next few months, I think gold is a good safe bet considering the downgrade on the United States. It's still to me a buy-and-hold market," said Bob Haberkorn, senior market strategist at RJO Futures.
Financial markets were also shaken when US Treasury Secretary Scott Bessent said on Sunday that US President Donald Trump would slap tariffs at the rate he threatened on April 2 if trade partners do not engage in "good faith."
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