Gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the U.S. government's credit rating. Spot gold rose 0.9% to $3,229.51 an ounce by 1315 ET (1715 GMT).

Gold price rises as dollar weakens, Moody’s downgrade fuels demand. Traders eye breakout above $3,238 for bullish momentum in XAU/USD.

Gold prices have exhibited volatility amidst global economic uncertainties, including concerns over US trade policies and

Gold prices rose on Wednesday to their highest levels in a week as the dollar weakened and investors sought safety amid U.S. fiscal uncertainty, with Congress debating a sweeping tax bill.

Gold prices edged higher on Monday, finding support from escalating concerns over the US economic outlook and its burgeoning budget deficit, which bolstered the appeal of traditional haven assets.

Gold prices rebounded on May 21, after a slight drop which was seen in the previous day. Gold's June contracts on the Multi Commodity Exchange of India (MCX) opened at Rs 95,344 per 10 gram today. Let's check the latest prices of 10 grams of 22 carat and 24 carat gold in major cities of the country on May 19:

The debt downgrade does nothing to impair the reserve currency status of the U.S. dollar. Given the massive short position on U.S. Treasuries, bond buyers could see a significant drop in yields and a rise in bond prices, particularly if this coincides with the onset of a recession or Fed rate-cutting cycle.

Moody’s Investors Service downgraded the U.S. sovereign credit rating from Aaa to Aa1, marking the first time all three major credit rating agencies—Moody’s, S&P, and Fitch—have rated U.S. debt below the top tier.

Let's check the latest prices of 10 grams of 22 carat and 24 carat gold in major cities of the country on May 19: