Gold Defies Weak US Data with Strong Rally Above $4,100

Gold prices held steady despite disappointing US durable goods data on Monday, which highlighted continued weakness in the manufacturing sector. The Commerce Department reported a 0.3% increase in durable goods orders for June, below economists' expectations of a 1.6% rise.

The lackluster reading did not seem to faze gold investors, who focused instead on easing geopolitical tensions and lower oil prices. Gold climbed above $4,100 an ounce as the dollar fell and oil retreated, providing support for bullion even without a strong 'panic' safe-haven bid.

Spot gold was last trading at $4,087.17, up 0.80% on the day, while US gold futures advanced 1% to $4,112.10. Silver also surged higher, reaching $59.81 as traders rotated toward precious metals on rate expectations and oil prices.

The data may have been disappointing, but it could potentially offer some support to gold in the long run. A slowing economy could make the Federal Reserve more reluctant to raise interest rates, even as inflation pressures remain elevated.