Gold reaches one‑month peak amid Middle‑East shipping optimism
Investors pushed spot gold up 2.7% to $4,188.55 per ounce at 07:55 ET (11:55 GMT) on Wednesday, while front‑month gold futures rose 2.3% to $4,248.72. The rally marked the third consecutive session of gains and set a one‑month high.
The price surge was driven by growing optimism that an interim agreement to reopen the Strait of Hormuz will be reached. Qatar announced a draft proposal to restore shipping, and reports indicated that the United States, Iran and Oman were close to a deal, with U.S. officials targeting an announcement as early as Wednesday. Treasury Secretary Scott Bessent also said a reopening could be announced within the week, further calming concerns that prolonged disruptions to global energy supplies would keep inflation elevated.
Brent crude futures, the benchmark for global oil, were trading higher after earlier sharp declines, reinforcing expectations of lower oil prices. The prospect of cheaper oil prompted traders to cut expectations for Federal Reserve tightening; market pricing now reflects only one U.S. rate hike by year‑end, down from two hikes a week earlier. A weaker U.S. Dollar Index also made dollar‑denominated gold more attractive to overseas buyers.
ING analysts highlighted that the most significant macro data point for the week will be the U.S. jobs report for July, due on Friday, with additional private‑payroll and services‑sector activity data scheduled for Wednesday.
(Reporting by Scott Kanowsky)