Gold Price Surge: Yellow Metal Nears $4,300 as US-Iran Tensions Ease

Gold prices neared $4,300 per ounce on August 6, marking a more than seven-week high as investors sought safe-haven assets due to easing tensions between the US and Iran.

The precious metal was up 0.9% or $38.18 at $4,285.60 per ounce, with spot silver also firm above the $62 per ounce level.

The rally in gold prices was supported by a weaker US dollar and lower crude oil prices, which helped ease inflation worries and reduced the need for aggressive interest rate hikes.

A report on Iran's Deputy Foreign Minister Kazem Gharibabadi said an understanding with Oman on a shipping route through the Strait of Hormuz is 'on the verge of being finalised', helping to keep crude oil prices relatively stable at around $80 per barrel.