Moody’s Credit Rating reflected a weakened outlook of gold as it reduced its assumption for gold price in the next couple of years. Cutting its Gold price forecast for the year, Moody’s Investor’s Service said that the credit ratings of the Canada’s largest precious metal producers are at a risk.
Investors shouldn’t trust the opinion of Moody’s Investors Service on the U.S.’s Aaa rating and should rely instead on the company’s competitors, according to Pacific Investment Management Co. founder Bill Gross.
Alcoa Inc.’s speculative-grade credit ranking at Moody’s Investors Service makes it only the second junk-rated Dow Jones Industrial Average company in at least three decades. It took four years for the first to be ejected.
Gold and silver futures rebounded after Moody’s Investors Service said U.S. policy makers must address debt woes to avoid a credit-rating downgrade this year, boosting the appeal of the metals as a haven.
The pound weakened against the dollar, the euro and especially gold as currency markets reacted to Moody's decision to downgrade Britain from AAA citing "continuing weakness in the U.K.'s medium-term growth outlook" and concerns over massive debt levels in the U.K.
McGraw-Hill Cos., the owner of the world’s largest ratings company, was downgraded by its biggest rival after the U.S. government filed a lawsuit that seeks as much as $5 billion in damages.
The global bond market disagreed with Moody’s Investors Service and Standard & Poor’s more often than not this year when the companies told investors that governments were becoming safer or more risky.
