Gold prices continued moving higher on Monday as investors maintained demand for the precious metal amid concerns over U.S. fiscal conditions, while silver experienced modest profit-taking following its recent breakout.
Spot gold traded near $4,648.40 per ounce, gaining 1.00% during the session, while spot silver declined slightly to around $68.75 per ounce, down 0.16%.
Markets Focus on Rates, Inflation and Fiscal Concerns
U.S. equity markets ended mixed, with artificial intelligence-related technology stocks weighing on the broader market. The S&P 500 declined 0.3%, while the Dow Jones Industrial Average gained 0.3%. The Nasdaq Composite fell 0.8%, and the Russell 2000 also dropped 0.8%.
European markets were largely unchanged, with the STOXX Europe 600 finishing flat. The FTSE 100 gained 0.35%, while Germany’s DAX, France’s CAC 40, and Italy’s FTSE MIB all posted modest declines.
The main driver supporting gold remains a combination of softer U.S. inflation and spending data, reduced expectations of a September Federal Reserve rate hike, and ongoing concerns surrounding government debt and long-term Treasury yields.
The 10-year Treasury yield eased toward 4.70% as oil prices declined, while the 30-year yield remained near the 5.2% level. Investors are now watching upcoming events, including Nvidia’s earnings report, the July PCE inflation data, and Federal Reserve Chair Kevin Warsh’s Jackson Hole speech for further signals on economic growth and monetary policy.
Gold Benefits From Debt Concerns and Dollar Weakness
Gold has remained above the $4,600 level as investors continue to focus on Treasury buyback expectations, concerns over rising government debt, and sensitivity to movements in the U.S. dollar.
Silver’s recent decline highlights differences within the precious metals market. While the metal remains supported by similar macroeconomic factors, traders took profits after silver briefly moved above the $70 level.
Geopolitical Risks Keep Support for Safe-Haven Assets
The situation surrounding the Strait of Hormuz continues to influence oil markets, inflation expectations, and defensive investment demand.
The United States announced new sanctions targeting Iran, while negotiations between Washington and Tehran remain unresolved. Although the measures did not immediately trigger a broader disruption to energy markets, uncertainty around Persian Gulf shipping continues to provide support for defensive assets.
Brent crude declined to around $90.54 per barrel, while West Texas Intermediate traded near $84.00. Lower oil prices helped ease pressure on yields, but geopolitical uncertainty continues to create a floor for gold demand.
Gold Technical Outlook
Gold bulls are focused on breaking above the $4,650 resistance level. A sustained move higher could target $4,772.17, followed by $4,968.06.
On the downside, bears are watching support near $4,594.10. A break below this level could open the door toward $4,453.00 and then $4,359.00.
Key levels:
- Resistance: $4,650.00, then $4,772.17
- Support: $4,594.10, then $4,453.00
Silver Technical Outlook
Silver bulls are attempting to reclaim the $70.02 level. A move above this point could push prices toward $71.56 and then $72.08.
Meanwhile, sellers are watching support near $68.42. A break below that level could expose silver to further declines toward $66.29 and $61.33.
Key levels:
- Resistance: $70.02, then $71.56
- Support: $68.42, then $66.29
