Late last Friday, Moody’s Investment Service joined all the other credit rating agencies in downgrading U.S. debt from Aaa to Aa1, limiting some super-safe money funds from investing in America. The move also signals the formerly risk-free U.S. debt market is no longer risk-free, and that gold is now the lone safe-haven of choice.
Following a healthy 11% correction from an extreme overbought all-time high at $3500, Gold Futures reacted in kind this week, moving above initial resistance at $3300. Geopolitical concerns, a growing sovereign debt crisis, and evidence of stagflation setting in during an ongoing trade war have been the principal drivers for gold becoming the safe-haven of choice.
Looking ahead, Moody’s said it sees little hope that government spending will materially change. At the current trajectory, the nearly $37 trillion deficit is expected to advance from 5.4% of GDP in 2024 to around 9% by 2035.
For the rest of this column: https://www.kitco.com/opinion/2025-05-23/gold-safe-haven-choice-us-debt-back-focus