Gold Price Surges Above $4,250 on Iran Deal Hopes

Gold prices rose above $4,250 in early Asian trading hours on Thursday, marking its biggest daily jump since February. The precious metal's rally was driven by optimism over a potential deal to reopen the Strait of Hormuz and ease energy-driven inflation fears.

Iran's Foreign Ministry spokesperson Esmaeil Baghaei said that a deal with Oman on a route through the Strait of Hormuz is being finalized, but the US and Israel still pose a danger to ships in the vital waterway. Meanwhile, US President Donald Trump claimed that a deal could be reached on Wednesday.

Reports of a potential interim agreement to clear and reopen the critical waterway have eased inflation fears and reduced expectations for aggressive Federal Reserve interest rate hikes. This has boosted the yellow metal's price in the near term.