Spot gold gained 1.00% in late-afternoon trading, buoyed by deep-seated concerns over U.S. debt and treasury buyback expectations. This defensive appetite persists despite a broader market shift, where AI-linked technology stocks dragged the Nasdaq Composite down 0.8%. Investors are currently weighing a complex mix of signals, including softer inflation data that has dampened immediate expectations for a Federal Reserve rate hike, set against the backdrop of long-end Treasury yields that remain a constraint on market optimism.

Energy markets are adding another layer of uncertainty. Brent crude retreated to $90.54 a barrel following new U.S. sanctions on Iran, which stopped short of triggering a broader market shock. While lower oil prices helped ease pressure on 10-year Treasury yields, falling to 4.70%, the unresolved geopolitical tension in the Strait of Hormuz provides a floor for defensive assets. Market participants are now bracing for a critical week, with eyes fixed on upcoming Nvidia earnings, the July PCE inflation report, and a highly anticipated speech from Fed Chair Kevin Warsh at Jackson Hole. Technically, gold bulls are eyeing a push above $4,650.00 to sustain upward momentum, while silver remains tethered to dollar strength and bond market volatility.