Gold Prices Rebound on Iran-Oman Deal, PCE Data Selloff
Gold prices have rebounded following a surprise agreement between Iran and Oman on revenue sharing in the Strait of Hormuz. The deal, which has not yet been finalized, eased inflation concerns and sent gold prices lower in the short term.
However, subsequent PCE data came in above market expectations, reigniting inflation worries and sending gold lower in the short term. Spot gold is currently trading around $4,622, down 0.79%, but the overall trend remains very strong.
The international gold market staged a remarkably strong rally in August, with gold prices surging 15% over the month - their strongest monthly gain in more than four months. This sharp rebound has completely reversed the previous prolonged slump in gold prices, making it the standout performer in the commodities market recently.