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Gold hits one-month high as Hormuz reopening hopes lift risk sentiment
XAU/USD was around $4,155, up nearly 1.9% on the day, helped by lower oil prices tied to optimism about a Strait of Hormuz shipping restoration.
Gold prices rose to a one-month high as renewed hopes for reopening the Strait of Hormuz weighed on oil and supported bullion, FXStreet reported. At the time of writing, XAU/USD traded around $4,155, up nearly 1.9% on the day.
The optimism followed comments by US President Donald Trump on day-long negotiations with Iran and a report that the United States, Iran, and Oman were nearing an interim arrangement. Axios reported an interim deal that could be announced as early as Wednesday, featuring a temporary 60-day setup between Iran and Oman aimed at restoring shipping.
ING strategists said lower energy prices have eased some inflation concerns, but markets still weigh uncertainty around US monetary policy after the prior Federal Reserve meeting. FXStreet noted the US dollar showed only limited weakness, with the US Dollar Index (DXY) flat around 99.85, while Treasury yields remained elevated despite pulling back from recent highs.
Ahead of US labor data, traders looked for signals on the Fed’s next move, with the ADP Employment Change report later on Wednesday and Friday’s Nonfarm Payrolls. According to the CME FedWatch Tool, markets still priced in around a 56% chance of a September rate hike, down from about 67% a day earlier, keeping gold’s upside potentially capped unless oil declines further.
Latest closeGold $4,133.60 ▲2.5%|Dollar index 99.88 ▼0.1%