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Gold slips from two-month high as Strait of Hormuz fears lift oil
Gold was off its two-month peak near $4,435 while oil strength tied to Strait of Hormuz uncertainty fed expectations for higher inflation.
Gold prices eased in European trade, with XAU/USD down 0.26% to about $4,380 after rising earlier to a two-month high near $4,435, according to FXStreet.
The pullback came as oil prices advanced further on heightened uncertainty around the reopening of the Strait of Hormuz, a route tied to nearly 20% of global energy supply. Analysts at Danske Bank pointed to a rise in Brent crude to about $87 per barrel as prospects for a near-term resolution to the US-Iran conflict faded, with negotiations described as stalled.
FXStreet said the oil rally can strengthen global inflation expectations, raising fears of interest rate hikes by central banks and hurting gold, which does not generate yield. Markets were also set to focus on the US Consumer Price Index for July, expected to shape Federal Reserve rate expectations.
FXStreet added that the metal was trading around $4,377.9, staying above its 20-day exponential moving average near $4,174.8. The outlet noted the RSI near 66.4, approaching overbought territory, which can signal upside momentum but also a potential pause or shallow correction ahead of key data.
Latest closeGold $4,448.60 ▲2.5%|WTI crude $82.30 ▲5.3%|Brent $87.85 ▲5.2%