Gold falls as haven demand from Moody’s downgrade fades

Gold fell as the haven-demand boost from Moody’s Ratings downgrade of the US faded, and attention turned back to the easing of trade tensions between the two largest economies.

Bullion slid 0.5% to around $3 212 an ounce, erasing some gains from Monday. There was a generally risk-on tone in wider financial markets, with stocks in Asia tracking Wall Street higher, a negative for gold, which usually benefits from pessimism over the economy.

The precious metal rallied sharply earlier in the year as US President Donald Trump’s aggressive trade policy rattled global markets, but the gains have gone into reverse this month as he paused or pulled back on many of his tariff threats. Gold is still up by more than fifth this year, however, and is unlikely to go into a sharp decline due to the uncertainty that Trump has injected into the global economy.

Gold fell 0.5% to $3 211.88 an ounce as of 12 p.m. in Singapore. The Bloomberg Dollar Spot Index was flat after dropping 0.6% on Monday. Silver fell, while platinum and palladium edged higher.

© 2025 Bloomberg

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