Gold regains previous week's losses amid US credit rating downgrade

On Monday, gold began to actively regain the previous week's losses, which were caused by easing global trade tensions. According to Investing, the rise in gold prices was driven by several factors simultaneously.

The first was Moody’s downgrade of the US credit rating because of the country's growing national debt and uncertain economic prospects. The second was mixed data from China, highlighting the negative effects of the trade confrontation between the world's two leading economies. Also, the need to hedge investments is growing among traders against the backdrop of Trump's planned tax reforms.

Investing reports that the changed market environment has once again weakened investors' appetite for risk and increased demand for safe-haven assets, such as gold. This contrasts with last week’s trend, when prices fell following the US-China trade deal.

Meanwhile, copper prices did not show any significant changes after the release of mixed reports from China. While industrial activity held steady, fixed-asset investment and retail sales fell short of analysts’ expectations.