Gold Price Rises After Moody's Downgrades us Credit Rating

The price of gold rose on Monday following Moody's downgrade of the United States' credit rating. The precious metal was traded at $3,238 per ounce in London, $34 higher than on Friday. Moody's lowered the U.S. rating from 'Aaa' to 'Aa1' due to rising government debt and servicing costs. UBS analysts anticipate no major financial market impacts from the downgrade. Oversea-Chinese Banking Corporation strategists foresee gold price fluctuations in the coming days. They also noted that U.S. tariff policies and weaker demand for U.S. bonds could structurally support gold prices in the long term.