WASHINGTON (dpa-AFX) - After ending last week's volatile trading sharply lower, the price of gold showed a strong move to the upside during trading on Monday.
Gold for May delivery surged $46.90 or 1.5 percent to $3,228.90 an ounce after plunging by 4.6 percent last week due in large part to a steep drop last Monday.
The significant increase by the price of the precious metal came after Moody's announced it has downgraded the U.S. debt rating by a notch to Aa1 from Aaa.
Moody's said the downgrade reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.
Gold also benefitted from its appeal as a safe haven amid lingering trade uncertainty, as Treasury Secretary Scott Bessent told CNN News tariff rates will soon return to a 'reciprocal' level if countries don't reach trade agreements during the 90-day pause.
'President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level,' Bessent said.
On the U.S. economic front, the Conference Board released a report showing its reading on leading U.S. economic indicators slumped by more than expected in the month of April.
The report said the leading economic index tumbled by 1.0 percent in April after sliding by a downwardly revised 0.8 percent in March.
Economists had expected the leading economic index to decrease by 0.8 percent compared to the 0.7 percent drop originally reported for the previous month.
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