Spot gold rose 0.77% to $4,083.00 an ounce, while silver climbed 1.21% to reach $58.74. While gold briefly breached the $4,100 mark in overnight trading, it struggled to maintain that momentum. David Morrison, senior market analyst at Trade Nation, attributed the gains to a reduction in safe-haven dollar exposure as geopolitical tensions cooled. Despite the lull, the Strait of Hormuz remains a critical pressure point for energy markets, keeping a floor under bullion prices.

Macroeconomic focus remains fixed on the Federal Open Market Committee. Markets are currently pricing in a significant chance of a rate hike this week, though expectations have moderated since Friday. This shift has allowed Treasury yields to retreat from recent highs, offering temporary support to non-yielding assets. Furthermore, durable-goods orders for June rose just 0.3%, a softer-than-expected figure that complicates the Fed's path forward as policymakers weigh persistent inflation against emerging signs of economic fatigue.