Gold Price Stabilizes Near Seven-Week High Amid Strait of Hormuz Diplomacy

Gold prices held steady near a seven-week high on Monday as investors weighed the possibility of a diplomatic resolution to tensions in the Strait of Hormuz, a critical chokepoint for global oil shipments.

The spot gold price was trading around $2,380 per ounce as of 10:00 AM GMT, holding gains from the previous session, while futures on the COMEX remained firm.

The recent rally in gold has been driven by a combination of geopolitical uncertainty and expectations of interest rate cuts by major central banks, with the precious metal climbing over 4% in the past two weeks.

However, news of a potential deal regarding the Strait of Hormuz has prompted some profit-taking, capping further upside as traders wait for clarity on the diplomatic front.