Gold Price Hits $4,255 as US-Iran Talks Ease Rate Hike Fears
TLDR
- Gold climbed to $4,255, marking its strongest daily gain since February and a six-week high.
- Progress in US-Iran talks reduced inflation concerns, supporting demand for the precious metal.
- Lower inflation expectations prompted markets to scale back forecasts for additional Fed rate hikes.
- Goldโs market capitalization rose by $1.3 trillion, reaching approximately $30 trillion.
- Investors are closely watching the US July Nonfarm Payrolls report for clues on future Fed policy.
Gold prices climbed sharply on Thursday, reaching around $4,255 per ounce during the Asian session after renewed optimism over US-Iran negotiations reduced inflation concerns and lowered expectations for additional Federal Reserve interest rate increases.
The precious metal recorded its strongest daily gain since February as investors reacted to reports that discussions to reopen the Strait of Hormuz were moving forward. The latest move also pushed gold to its highest level in about six weeks.
Gold Rallies as Strait of Hormuz Talks Progress
Gold extended its gains after Iran said an agreement with Oman on a shipping route through the Strait of Hormuz was being โfinalised.โ Iranian Foreign Ministry spokesperson Esmaeil Baghaei added that risks from the United States and Israel still remained for vessels operating in the region.
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