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Gold prices rise on Tuesday amid persistent market turmoil following Moody’s downgrade of the US credit rating.
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President Trump hinted at a possible complete US withdrawal from efforts to resolve the Ukraine-Russia conflict.
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Gold remains steady, trading above $3,225 within a narrow range during Tuesday’s session.
Gold (XAU/USD) trades around $3,240 on Tuesday, recovering from an earlier dip following comments from Federal Reserve officials on Monday regarding Moody’s downgrade of the US credit rating. Atlanta Fed President Raphael Bostic noted that the downgrade could ripple through the economy and emphasized the need to wait another 3 to 6 months to see how the uncertainty unfolds, according to Bloomberg.
On the geopolitical front, the US’s image took a hit after President Donald Trump discussed his recent two-hour phone call with Vladimir Putin about resolving the Ukraine conflict. Trump indicated that while negotiations would begin immediately, the US might withdraw from further efforts if talks break down again. He cited “big egos involved” and warned, “If there’s no progress, I’m just going to back away,” adding, “This is not my war,” as reported by Reuters.
This marks a sharp reversal from Trump’s campaign promise to end the war within his first 100 days, signaling a possible complete US pullout from the conflict as the president appears unable to resolve the situation.
Daily Digest Market Movers: Moody’s Downgrade Impact Lingering
- Gold prices declined as the initial safe-haven demand sparked by Moody’s downgrade of US credit ratings faded, with market focus shifting back to easing trade tensions between the world’s two largest economies, Reuters reports.
- Meanwhile, the Trump administration granted the final federal permit for a gold mine project by Perpetua Resources Corp., which also contains antimony—a critical mineral used in munitions. The US Army Corps of Engineers approved the Clean Water Act permit for the Stibnite project in Idaho, facilitated by Interior Secretary Doug Burgum, chair of the National Energy Dominance Council, according to a Bloomberg statement.
- US Treasuries held steady on Tuesday after volatile moves on Monday following Moody’s downgrade of US debt. US equity-index futures slipped 0.3%, while gold dipped 0.5%, reflecting weaker demand for traditional safe havens, Bloomberg reports.
Gold Price Technical Analysis: Range-Bound Trading
Despite the weakened perception of the US Dollar and the country overall—which would typically support gold as a safe haven—the headwinds from elevated US Treasury yields continue to limit gains for the precious metal. As a result, gold is expected to trade sideways until a new catalyst emerges.
On the upside, gold faces resistance at the key $3,245 level (April 1 high), which proved difficult to breach on Monday. If this level is surpassed, the next resistance points are R1 at $3,250 and R2 at $3,271, though a strong market driver is needed to push prices higher.
Support levels include the daily S1 at $3,207 and the psychological $3,200 mark. Should these give way, gold could slide toward the intraday S2 support at $3,185, the April 3 high at $3,167, and ultimately the 55-day Simple Moving Average (SMA) near $3,151.
