09:35 AM EDT, 05/20/2025 (MT Newswires) -- Gold traded higher for a second day early on Tuesday even as treasury yields rise after last week's downgrade of the U.S. credit rating by Moody's Ratings.

Gold for June delivery was last seen up US$15.00 to US$3,248.50 per ounce, remaining under the April 21 record of US$3,425.30 per ounce.

The price of the metal rose on Monday as the dollar dropped after Moody's on Friday cut its rating on U.S. debt to AA1 from AAA because of the country's growing fiscal deficits and pending legislation that could accelerate the deficits.

"Gold is struggling to hold onto Monday's gains - with resistance established around USD 3250 - after the Moody's US downgrade bid faded," Saxo Bank noted.

After falling 0.66 points on Monday, the ICE dollar index was last seen up 0.01 points to 100.44.

However treasury yields moved up on Tuesday, bearish for gold since it offers no interest. The yield on the U.S two-year note was last seen up 0.17 basis points to 3.996%, while the 10-year note was paying 4.497%, up 4.3 points.