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Gold climbs for a fourth straight day on Strait of Hormuz deal
Gold is up nearly 6% for the week, as pricing shifted toward fewer Fed rate hikes after weak ADP jobs data and cooling labour-market signals.
Gold extended its rally for a fourth consecutive day, rising to about 4,300 USD per ounce on Thursday and gaining nearly 6% since the start of the week, according to Action Forex.
The latest support came from a partial agreement to reopen shipping through the Strait of Hormuz, which includes an Iran-Oman plan to establish a shipping corridor. The development has weighed on oil prices and helped ease broader concerns about inflation.
At the same time, weak US private-sector employment data added to the tone for gold, with ADP reporting that July private sector employment rose by only 44,000 jobs, far below the 70,000 forecast and the weakest since January.
Action Forex also noted that markets have scaled back expectations for Fed tightening, now pricing in only one rate hike before year end. Still, Federal Reserve official Lisa Cook reiterated that the central bank is prepared to raise rates if inflation does not slow toward the 2% target, keeping the risk of further tightening in focus.
Latest closeGold $4,308.50 ▲5.2%