02:00 PM EDT, 05/20/2025 (MT Newswires) -- (Updates prices.)

Gold traded higher for a second day mid-afternoon on Tuesday as the dollar weakens following last week's downgrade of the U.S. credit rating by Moody's Ratings.

Gold for June delivery was last seen up US$51.20 to US$3,284.70 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.

After falling 0.66 points on Monday, the ICE dollar index was last seen down 0.3 points to 100.13.

Treasury yields were mixed. The yield on the U.S two-year note was last seen down 1.3 basis points to 3.966%, while the 10-year note was paying 4.478%, up 2.6 points.