Gold Prices Rise Near Two-Month Highs Amid Strait of Hormuz Tensions

Gold prices rose modestly on Tuesday, reaching near two-month highs as safe-haven demand increased due to the Strait of Hormuz standoff. Spot gold was trading at $4,412.50 an ounce, up 0.56% on the session, while spot silver was trading at $65.680, up 0.13%. The market positioning remains a two-sided trade ahead of Wednesday's CPI report and Thursday's producer price data.

The recent weaker jobs data kept rate-sensitive gold supported, but the rebound in crude oil and elevated inflation path have pulled September Fed expectations back toward a coin toss. The 10-year Treasury yield was near the 4.7% area, with the U.S. dollar firmer, limiting gold's follow-through above the session high.

North American equities closed softer after last week's record levels, while Brent crude settled at $88.91 a barrel, up 1.4%, and WTI settled at $83.20, up 1.3%. The Strait of Hormuz remains the main geopolitical risk premium across metals and energy.