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Gold Climbs to Seven-Week High as Dollar Falls amid Hopes for Strait of Hormuz Reopening
Gold rose for a fourth consecutive session on Thursday, reaching its highest level in seven weeks, supported by a weaker dollar and falling US Treasury yields as hopes grew for a settlement over the Strait of Hormuz.
By 00:35 GMT, spot gold was up about 1% at $1,428.69 an ounce, its highest since June 18, while US gold futures gained about 0.9% to $1,434.50.
The yield on the 10-year US Treasury eased and the dollar came under pressure, making dollar-priced commodities cheaper for holders of other currencies and boosting demand for gold as a hedge.
Reports indicated that a proposed deal between Iran and Oman could grant Tehran operational control over ships transiting the Strait of Hormuz — a concession that would mark a significant diplomatic development — fueling optimism that the conflict with Iran may ease. Markets trimmed expectations of a Fed rate hike in September to about 55% from 67% two days earlier.
Federal Reserve Governor Lisa Cook said she is open to raising the short-term policy rate to address “very high” inflation. Investors are also awaiting the US nonfarm payrolls report for July due Friday.
An ADP employment report on Wednesday showed private-sector job growth slowed in July, with an increase of 44,000 jobs after a downwardly revised 95,000 gain in June.
Among other precious metals, spot silver rose 0.4% to $62.34 an ounce, platinum gained 0.8% to $1,750.15, and palladium climbed about 1% to $1,377.
