Gold posts biggest jump in 6 months as Hormuz deal progress eases rate-hike bets
Gold prices posted their biggest one-day jump in six months as progress on a Strait of Hormuz deal between Iran and Oman lowered expectations of further interest-rate hikes. Bullion rose 1% to $4,347.90 an ounce on the morning of August 6.
Gold prices posted their sharpest one-day gain in six months after Iran said a deal with Oman over the Strait of Hormuz was nearing its final stages. Bullion rose 1% to $4,347.90 an ounce on the morning of August 6.
Analysts said the progress on the deal boosted expectations that regional tensions could ease, lowering the likelihood that central banks would pursue further interest-rate increases. That made non-yielding assets such as gold more attractive to investors.
Investors are expected to watch closely for further developments in the Hormuz talks as well as central banks' tone at upcoming meetings. Market participants say a formal signing of the deal could trigger additional moves in commodity prices.
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