Overview

• Gold has rebounded 1% to trade near $3,240 per ounce after Moody's downgraded the US credit rating from AAA to Aa1.
• Moody's cited rising fiscal deficits and unsustainable debt growth as reasons for the downgrade, shifting the US outlook to 'stable.'
• The dollar fell by 0.6%, making gold more attractive to international buyers and supporting its price recovery.
• Gold has experienced significant volatility recently, dropping $300 from its April record high of $3,500 before recovering.
• Analysts predict short-term price fluctuations but point to structural factors, including global conflicts and central bank inflows, as long-term drivers for gold's upward trajectory.