Gold prices rose 0.93% to close at 93,297 on concerns about the US economy and government debt. Credit rating agency Moody’s downgraded the US government’s rating, citing high debt and rising interest costs. This increased the appeal of gold as a safe-haven investment for investors.
Gold fell more than 3% last week, but it rebounded from its biggest weekly loss since November. That earlier decline came as investors were more optimistic about the temporary easing of US-China trade tensions.
Recent weak US economic data and low inflation led to expectations that the Federal Reserve could cut interest rates in late 2025. Demand for gold rose sharply in key Asian markets. In China, gold prices were $9 to $50 an ounce above international prices. In India, price fluctuations led to discounts of up to $34 per ounce. Moderate price premiums were seen in Singapore and Hong Kong, while premiums in Japan were lower at $0.25 to $0.50 per ounce.
