By Sarah Qureshi
(Reuters) – Gold prices rose more than 1% on Tuesday as the U.S. dollar weakened further, while uncertainty persisted over U.S. tariff policy and the Russia-Ukraine ceasefire.
Spot gold was up 1.6% at $3,280.32 an ounce by 1049 ET (1449 GMT), while U.S. gold futures were 1.5% higher at $3,283.10.
The dollar slipped again on Tuesday, weighed down by the Federal Reserve’s caution over the economy, having sold off broadly on Monday after ratings agency Moody’s downgraded the U.S. sovereign rating last week.
A softer dollar makes bullion cheaper for buyers holding other currencies. [USD/]
“There’s still a level of uncertainty out in the market. Most notably, the Moody’s downgrade, weakening dollar have supported the precious metals complex overall,” said David Meger, director of metals trading at High Ridge Futures.
Moody’s downgraded the United States one notch from “Aaa” to “Aa1” on Friday due to concerns about the nation’s growing debt. Fed officials speaking on Monday took on board the ramifications of the downgrade as well as the unsettled market conditions as they continued to navigate an uncertain economic environment.
Bullion is considered a safe asset during periods of geopolitical and economic uncertainties.
“Gold will be in a trading range between $3,000 and $3,500 for the balance of the year. There is some short-term chart resistance around the $3,270 mark – it seems to have trouble breaking above that,” said Marex analyst Edward Meir.
Ongoing tensions between Russia and Ukraine are more of a factor for platinum and palladium, Meger said, as no potential deal could mean lesser supply on the market coming from Russia. Russia is the world’s biggest palladium producer and second biggest platinum producer.
The EU and Britain announced new sanctions against Russia on Tuesday without waiting for the U.S. to join them, a day after President Donald Trump spoke to Vladimir Putin but was unable to extract a promise for a ceasefire in Ukraine.
Platinum reached its highest since October 2024, climbing 3.8% to $1,035.53. Palladium rose 2.7% at $1,001.25, its highest since February 14.
Spot silver rose 1.3% to $32.78.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Jan Harvey)
