Gold Prices Soar Amid Tensions in Strait of Hormuz

The price of gold has surged in recent trading sessions, reaching $4,412.50 per ounce, up 0.56%, due to increased demand for safe-haven assets related to tensions in the Strait of Hormuz.

However, when new data on the US housing sector was released, showing a 1.7% decrease in total existing home sales, gold prices dropped slightly, falling to $4,385.57 per ounce before rebounding.

The market is now waiting for the release of the US consumer price index (CPI) report and production price data, which may influence expectations about a potential interest rate adjustment by the Federal Reserve in September.

Rising oil prices and concerns about high inflation also support gold as a defensive asset, with Brent oil reaching $88.91 per barrel and WTI oil at $83.20 per barrel.