Gold Rallies Amid Fiscal Risk Bets, Silver Slips Slightly

Gold prices rose in late-afternoon U.S. trading on Monday, while silver slipped slightly. The spot price of gold was near $4,648.40 an ounce, up 1% from the previous session, while spot silver was trading at $68.75, down 0.16%. The rally in gold came as investors continued to bet on fiscal risk, with the metal holding above the $4,600 area due to concerns over Treasury buybacks and debt issues.

The latest positioning data shows that long-end yields and fiscal stress remain a constraint on markets, despite softer U.S. inflation and spending data reducing the urgency of a September Fed hike. The 10-year Treasury yield eased to around 4.7%, while oil prices fell due to the Strait of Hormuz remaining a major geopolitical concern.

Markets are looking ahead to key events this week, including Nvidia's earnings report on Wednesday and the July PCE inflation data, which could provide more clarity on growth and policy risks. The dollar index was firmer, while Brent crude fell to around $90.54 a barrel and WTI traded near $84.00.