Gold prices extended gains at the start of the week as concerns over U.S. fiscal risks and rising government debt continued to support demand for defensive assets. Silver, meanwhile, edged lower as investors took profits following last week’s strong rally.

At the time of writing, spot gold was trading around $4,648.40 an ounce, up 1.00%, while spot silver stood at $68.75 an ounce, down 0.16% on the session.

Fiscal Risks Continue to Support Gold

Markets are currently being driven by two opposing forces. Softer recent U.S. inflation and consumer spending data have reduced pressure on the Federal Reserve to raise interest rates in September. However, elevated long-term Treasury yields and concerns over the U.S. fiscal outlook remain key risks.

The 10-year U.S. Treasury yield eased to around 4.7%, while the 30-year yield remained near 5.2%.

Expectations for continued Treasury bond buybacks, together with concerns over government debt and U.S. dollar volatility, have helped gold remain firmly above the $4,600-per-ounce level.

Silver, by contrast, faced profit-taking after briefly moving above $70 an ounce late last week.

U.S. Stocks Mixed as Technology Shares Weigh on Markets

U.S. equity markets ended the session mixed:

• S&P 500: down 0.3% to 7,652.86

• Dow Jones Industrial Average: up 0.3% to 53,417.16

• Nasdaq Composite: down 0.8% to 25,980.19

• Russell 2000: down 0.8% to 2,995.08

AI-linked technology stocks continued to weigh on the Nasdaq. Investors are now focusing on Nvidia’s earnings report, the July PCE inflation data, and Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole for further signals on economic growth, inflation, and monetary policy.

U.S.-Iran Tensions Continue to Provide Support for Gold

The Strait of Hormuz remains one of the key geopolitical risks affecting oil and precious metals markets.

Washington announced additional sanctions targeting Iran, while negotiations between the U.S. and Iran remain unresolved. However, the latest measures have not triggered a major supply shock in global oil markets.

Brent crude fell to around $90.54 per barrel, while WTI traded near $84.00 per barrel.

Lower oil prices helped ease Treasury yields, providing additional support for gold. At the same time, unresolved tensions between the U.S. and Iran continue to underpin defensive demand.

Key Technical Levels to Watch

Gold

The $4,650-per-ounce area is the nearest resistance level.

A sustained move above this level could open the way toward:

$4,772 → $4,968 per ounce

On the downside, key support levels are located at:

$4,594 → $4,453 → $4,359 per ounce

Silver

Silver needs to reclaim $70.02 per ounce to restore stronger bullish momentum.

Upside targets are located at:

$71.56 → $72.08 per ounce

If silver falls below $68.42, the next downside levels to watch are:

$66.29 → $61.33 per ounce

Market Outlook

Gold’s near-term outlook remains supported by U.S. fiscal risks, elevated long-term Treasury yields, and geopolitical uncertainty. However, the $4,650 level is emerging as an important technical barrier.

In the coming sessions, market reactions to Nvidia earnings, the PCE inflation report, and Federal Reserve signals from Jackson Hole could determine whether gold has enough momentum to move toward the $4,770 area or retreats to retest support near $4,594.

This article is for informational purposes only and should not be considered investment advice.

Source: Kitco