Gold Holds Above $4,100 as Hormuz Deal Hopes Ease Inflation Fears

Gold prices continued to rise for a third consecutive day as reports of an imminent deal to reopen the Strait of Hormuz reduced concerns about inflation and lower the odds of a near-term Federal Reserve interest rate increase.

The implied probability of a September Fed rate hike has slipped to around 57%, down from roughly 67% just a day earlier, according to market expectations.

Central bank buying has remained a persistent feature of the gold market this year, with reserve managers continuing to diversify holdings amid ongoing geopolitical uncertainty.

Gold-backed exchange-traded funds in China have continued to attract inflows, supporting bullion above the closely watched $4,000 an ounce level.