Gold and Silver Soar on Weaker Dollar and Hormuz Hopes
Gold and silver prices surged on Wednesday, with gold futures for November 2026 deliveries rising 3.8% to $4,293.30 an ounce, its highest level since June 18. The SPDR Gold Shares ETF (GLD) jumped more than 4% on the same day, marking its biggest single-day gain in over five months.
The rally was driven by a weaker U.S. dollar and renewed hopes that the Strait of Hormuz could reopen soon, following comments from President Donald Trump. The Strait's closure has been a major concern for oil markets, which in turn affects gold prices due to their inverse relationship.
While the gains were significant, gold is still down more than 24% from its January record high of $5,602.2 and around 20% since the U.S.-Israeli strikes hit Iran on February 28, 2026. On a year-to-date basis, gold is down nearly 1.7%. Silver also saw a significant increase, jumping 4.5% to $62.2 an ounce, its highest in nearly a month.
Long-time gold advocate Peter Schiff pointed out that the weak July ADP jobs report was likely a catalyst for the explosive move in precious metals prices. The ADP reported that private employers added only 44,000 jobs in July, well below economists' expectations of 75,000.