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Gold rises as oil falls and US yields dip on Iran deal hopes
Bullion is up about 0.75%, with the dollar index edging lower and risk sentiment improving as markets track renewed Strait of Hormuz talks.
Gold prices rose on Tuesday, climbing about 0.75% as crude oil fell and US Treasury yields eased, helping support XAU/USD toward a two day peak.
The US Dollar Index was slightly lower amid growing speculation around a possible reopening of the Strait of Hormuz. FXStreet cited comments reported by IRIB that Iran and Oman continue talks, alongside a repost by US President Donald Trump of an article saying talks restart Monday on denuclearisation and that a deal is imminent.
The move also comes as markets weigh fresh US macro data, with June JOLTS declining and the US trade deficit narrowing versus the prior month. FXStreet noted expectations for upcoming employment reports, including ADP Employment Change and Nonfarm Payrolls, while also highlighting that the US 10 year T note yield fell 10 basis points to 4.687%.
Oil weakness, FXStreet added, could keep supporting gold if crude prices continue to tumble, with WTI down nearly 5% to $76.09 a barrel and money markets pricing in a near 59% chance of a Fed rate hike in September and 83% for December.
Latest closeGold $4,106.70 ▲1.4%|WTI crude $80.00 ▼5.5%|Dollar index 99.99 ▲0.2%