The Gold price (XAU/USD) has edged lower to approximately $3,230 during the early Asian session on Tuesday. This movement comes as a result of a modest rebound in the US Dollar (USD). However, concerns about the US economic health have emerged after Moody’s downgraded the national credit rating, which may limit the downside for gold prices.

Investors remain cautious about the global economic outlook. The impact of the downgrade leads to questions surrounding inflation and interest rates, prompting some market participants to seek safe-haven assets like gold. Recent trading activity suggests that while the price of gold faces obstacles, strong demand signals from the market may support a future rally.

Market analysts suggest watching key resistance levels closely. If gold can regain momentum and surpass the $3,250 mark, it may signal a stronger upward trend. Keep an eye on global economic indicators and central bank actions, as they could significantly influence the gold market.