Suche
Mein Konto
Gold price explodes! Moody's downgrade forces investors to act!
On May 21, 2025, gold prices rise following Moody's downgrade of the US credit rating, driving investors to safe havens.
Gold price explodes! Moody's downgrade forces investors to act!
On May 21, 2025, the world gold price rose to $3,296 per ounce early in the morning, up $86 from the previous low of $3,210 per ounce. This sharp price increase was primarily triggered by Moody's downgrading of the US government's credit rating. This measure raises concerns about the financial stability of the US and encourages investors to invest more in precious metals, which are considered safe investments. Vietnam.vn reports that the USD index fell slightly, which further supported the price of gold.
Moody's downgrade, which strips the US of its Triple-A rating, represents a historic turning point. This is unprecedented as the US has now lost its top-notch credit rating from all three major rating agencies. The reasons for this development include escalating budget deficits and rising interest costs. These uncertainties, combined with weak inflation data and disappointing economic indicators, are increasing pressure on the US economy. Additionally, markets may expect interest rate cuts from the Federal Reserve later this year. Kettner precious metals highlights that the price of gold had already increased by over 1% at the start of trading and investors' confidence in gold as a crisis currency remains strong.
Price development in Vietnam
In Vietnam, the price of SJC gold is VND 119.3 million per tael when sold until the end of May 2020. The price of gold rings reached VND114 million per tael during the same period. These developments reflect global trends and show how uncertainties in the U.S. economy are also impacting precious metals prices in other markets.
In summary, the current market situation shows that the downgrade of the US credit rating by Moody's not only causes an increase in the price of gold, but also increases concerns about the financial stability of the US. Investors seek security in precious metals and react to changing market conditions. Developments on the precious metal market are an indicator of confidence in the economic future.