Key Takeaways:
- Spot gold rose 2.2% to $4,164.13 per ounce, its highest since July 7
- Fed September rate-hike odds fell to 56% from 67% as crude retreated
- Egypt's 21-karat gold traded at EGP 5,943.41 for buying
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Gold climbs to one-month high near $4,164 on Hormuz reopening hopes
Spot gold advanced 2.2% to $4,164.13 per ounce, its highest since July 7, as optimism over a US-Iran deal to reopen the Strait of Hormuz eased inflation concerns and weakened the dollar.
"Lower energy prices have eased some inflation concerns, offering a more supportive backdrop for bullion," strategists at ING said, even as investors weigh the Federal Reserve's policy outlook.
US gold futures gained 1.7% to $4,223.60 per ounce. The dollar index held near a six-week low around 99.85, while Brent crude retreated to about $78.85 a barrel after President Donald Trump said Washington had "very good discussions" with Iran. Markets now price a 56% chance of a September Fed rate hike, down from 67% a day earlier, according to the CME FedWatch Tool.
Gold last traded above $4,200 in early July. The US ADP employment report due Wednesday and Friday's nonfarm payrolls are the next data points to watch, with a soft reading likely to reinforce the case for a pause.
Egypt 21-Karat Gold Trades at EGP 5,943
In Egypt, 24-karat gold was priced at EGP 6,791.79 for purchase and EGP 6,707.25 for sale, while 21-karat gold traded at EGP 5,943.41 for buying and EGP 5,869.43 for selling, according to Dahab Masr data. In India, gold of 99.9 percent purity rose Rs 2,500 to Rs 1,50,000 per 10 grams, the All India Sarafa Association said.
Silver Leads Complex With 3.8% Gain
Silver led the precious metals complex, climbing 3.8% to $61.76 per ounce, while platinum gained 2.6% and palladium rose about 2.6% to a two-month high. Gold's move compares with a rally from below $3,000 over the past year as central-bank buying and geopolitical risk underpinned demand.
Technically, spot gold has pushed back above its 21-day moving average at $4,064 but remains capped just beneath the 50-day average at $4,160, keeping the broader stance neutral. A daily close above $4,200 would open the way toward the 100-day average near $4,398, while a break below $4,000 would signal a deeper correction.
This article is for informational purposes only and does not constitute investment advice.
[1] Gold hits one-month high on ice hopes and weak Dollar[2] Arab Finance - Global gold hits one-month high; 21-karat price in Egypt nears EGP 5,950[3] Gold prices jump by Rs 2,500 to one-month high in Delhi; silver surges Rs 6,200[4] Gold advances to one-month high as Hormuz reopening hopes ease inflation fears[5] World gold prices rise to one-month high
