Gold prices climbed on Monday after markets absorbed Moody’s downgrade of the United States’ credit rating and a surprisingly strong surge in demand from China.
The downgrade, issued amid concerns about America’s long-term fiscal position, intensified investor caution already heightened by ongoing geopolitical tensions and economic uncertainty.
Meanwhile, unexpectedly large Chinese gold imports in April signaled continued appetite for the metal across Asia, supporting prices. Together, these developments suggest that gold is likely to remain well supported as investors seek safe-haven assets amid persistent global macroeconomic challenges.