Gold Daily | Gold Rises 1% on US Credit Downgrade, Safe-Haven Demand, and Weak Dollar Support

Generated by AI AgentAinvest Market Brief
Monday, May 19, 2025 8:01 am ET1min read
【Latest Gold Price and Recent Trends】

International gold prices rose over 1% on Monday, benefiting from a weaker dollar and increased safe-haven demand after downgraded the US government credit rating. Gold reversed the previous day's losses, currently around $3240 per ounce.

【Technical Analysis】

Gold exhibited a strong rebound near the trend line, with buyers pushing the price above key resistance at $3260. Sellers may intervene, expecting a pullback towards the trend line, while buyers aim for a break above $3260 to continue the upward momentum.

【Market Sentiment and Economic Background】

The downgrade of the US credit rating has intensified concerns about the country's financial health, boosting safe-haven demand. The dollar's weakness further supports gold, while geopolitical tensions and trade uncertainties add to the favorable conditions for gold.

【Analyst Opinions】

Carlo Alberto Casa from Swiss Bank emphasizes increased attractiveness of safe-haven assets due to growing concerns about the US economic outlook. Analysts, including those from , anticipate gold reaching $3,700 by year's end, driven by long-term structural factors such as diversification away from dollar-denominated assets.

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