Gold gains despite weak US durable goods data and uneven safe-haven demand

The gold market continued to struggle to attract a consistent safe-haven bid on Monday, even as fresh US economic data pointed to weaker-than-expected growth in the manufacturing sector.

Gold prices showed limited reaction to the disappointing durable goods figures.

Analysts noted that weaker manufacturing activity could potentially offer some support to the precious metal.

A slowing economy could make the Federal Reserve more reluctant to raise interest rates, even as inflation pressures remain elevated.

Spot gold was last trading at $4,087.17, up 0.80% on the day, as per data from commodity trading platforms.

US durable goods orders rise less than expected

The Commerce Department announced on Monday that US durable goods orders rose 0.3% in June.

The increase followed a revised 4.0% decline in May.

The June reading came in below economists' consensus expectations. Economists had forecast a 1.6% increase in durable goods orders.

The data highlighted continued weakness in the US manufacturing sector.

Gold moves above $4,100

Earlier on Monday, gold climbed above $4,100 an ounce.

The move came as a pause in US-Iran attacks pushed oil prices and the dollar lower.

The price action gave bullion an unusual lift from easing geopolitical tension rather than a fresh rush into traditional safe-haven assets.

Spot gold rose 1.4% to $4,110.56 an ounce by 0200 GMT.

US gold futures also advanced, gaining 1% to $4,112.10.

The decline in the dollar provided another source of support for bullion.

The dollar index slipped 0.3%, making gold cheaper for buyers using other currencies.

The move in gold came as markets responded to changes across several major asset classes.

The retreat in the dollar helped improve the appeal of the precious metal, while lower oil prices influenced broader market sentiment.

Silver rallies as oil prices retreat

Silver also advanced sharply during Monday's trading session.

Earlier in the day, silver surged towards $60 an ounce as a sharp retreat in oil prices encouraged precious-metals traders to look beyond immediate geopolitical risks.

The move also brought renewed attention to the outlook for interest rates.

Spot silver climbed 2.8% to $59.81 in early Asian trading.

The gain extended a broader rally across precious metals, with gold simultaneously moving above the $4,100 level.

The rise in silver came as traders reassessed the factors influencing precious-metals markets.

Rather than focusing solely on immediate geopolitical developments, market participants appeared to be paying greater attention to oil prices and the potential direction of interest rates.

Gold, meanwhile, remained higher despite its limited reaction to the weaker US durable goods data.

The precious metal continued to trade with an uneven safe-haven bid as investors weighed slowing manufacturing activity, elevated inflation pressures and the outlook for Federal Reserve policy.