Gold Breaks Above $4,100 Amid Dollar Decline and Oil Retreat

Gold prices rose on Monday despite weak US durable goods data, breaking above $4,100 an ounce as the dollar fell and oil retreated. The precious metal's gains were attributed to a decline in the dollar index by 0.3%, making gold cheaper for buyers using other currencies.

The Commerce Department reported that US durable goods orders rose 0.3% in June, below economists' consensus expectations of a 1.6% increase. Analysts noted that weaker manufacturing activity could potentially offer some support to the precious metal, as a slowing economy might make the Federal Reserve more reluctant to raise interest rates.

Spot gold was last trading at $4,087.17, up 0.80% on the day, while silver rallied faster than gold, climbing 2.8% to $59.81 in early Asian trading. Traders rotated toward precious metals on rate expectations, with silver's higher beta to macro and risk sentiment expected to outperform if the market keeps pricing fewer Fed hikes.