Insignia Consultants | Gold rises as soft dollar, Trump's tariff threats spur safe-haven demand
Gold rises as soft dollar, Trump's tariff threats spur safe-haven demand
May 19 (Reuters) - Gold prices climbed on Monday as a softer dollar and renewed trade tensions, following U.S. Treasury Secretary Scott Bessent's reaffirmation of President Donald Trump's tariff threats, fuelled safe-haven demand.
Spot gold was up 0.4% at $3,216.29 an ounce, as of 0445 GMT. U.S. gold futures gained 1% to $3,219.20.
Gold shed more than 2% on Friday and posted its worst week since last November, as increased risk appetite from the U.S.-China trade agreement weighed.
The dollar (.DXY), opens new tab slipped 0.3% on Monday, making greenback-priced gold cheaper for overseas currency holders.
"The Moody's downgrade of the U.S. credit rating, and the corresponding risk-off reaction by the market, has put some pep back into the gold price," said KCM Trade Chief Market Analyst Tim Waterer.
Moody's cut America's top sovereign credit rating by one notch on Friday, the last of the major ratings agencies to downgrade the country, citing concerns about the nation's growing debt pile.
Trump will impose tariffs at the rate he threatened last month on trade partners that do not negotiate in "good faith" on deals, Treasury Secretary Scott Bessent said in television interviews on Sunday.
