Gold Rallies on US Policy and Debasement Concerns

Gold prices extended a strong rally to trade near multi-month highs, building on momentum from the prior week. Analysts attribute the gains to a "debasement narrative" surrounding the US Dollar, fueled by the US Treasury's expanded bond buyback program and concerns over central bank credibility. Market participants are also looking ahead to key events, including US PCE inflation data and the Jackson Hole symposium, for further direction on rates and policy.

Heightened Geopolitical Risk Supports Safe-Haven Demand

A moderate risk-off mood prevailed in markets amid growing geopolitical tensions in the Middle East, as the US prepared to announce tougher sanctions against Iran. The situation has created uncertainty and kept the oil market tense over potential impacts on supply flows. This backdrop of geopolitical risk contributed to a subdued tone in US equity futures.

Silver Prices Consolidate After Recent Rally

Silver prices saw a modest decline on Monday, pausing after a strong recent advance that brought prices to their highest levels since mid-June. Buyers appeared to stall as the price of the metal fluctuated near the psychological $70 per ounce mark.