Gold Extends Rally, Breaking Through the $4,650 Level

Gold continues to build on last week's bullish momentum. The precious metal surged to $4,658, its highest level since May 15, as the US Treasurys expanded bond-buyback program pressured Treasury yields and weakened the US dollar. The Treasury has indicated it could increase buybacks beyond $4 billion after doubling purchases of longer-dated bonds.

However, the upside could be limited by higher oil prices and Middle East tensions, which could reignite inflation and increase expectations for Fed rate hikes.

In the US market, stock futures edged lower on Monday. Dow futures fell 0.03%, while S&P 500 and Nasdaq-100 futures declined 0.1% and 0.3%. Last week, the three major indices closed lower, ending their three-week winning streaks.

Oil prices eased on Monday as markets awaited details of a new US sanctions package against Iran. WTI fell 1.6% to $85.60, while Brent declined 1.4% to $93.00. The US administration is preparing what it describes as its toughest sanctions campaign against Iran, increasing uncertainty around Irans economy and global oil supply.

The crypto market is still mostly in the green. Bitcoin traded above $79,000 after surging more than 24% last week. The rally pushed Bitcoin as high as $79,500, bringing the key $80,000 resistance level into focus.

Institutional demand also strengthened significantly. US spot Bitcoin ETFs attracted more than $1.6 billion in inflows during the week, while more than $4.3 billion in short positions were liquidated. These forced liquidations amplified the rally as bearish traders were forced to buy Bitcoin to close losing positions. Meanwhile, Trumps support for the Clarity Act, which would establish clearer regulatory treatment for digital assets, provided an additional positive catalyst.

Markets now look ahead to US PCE inflation data on Wednesday, Federal Reserve Chair Kevin Warshs speech at the Jackson Hole symposium, and earnings from Nvidia and Marvell Technology.