Gold Prices Soar on Easing Rate Hike Concerns and Strait of Hormuz Optimism

Gold prices have been boosted by easing concerns over inflation and higher interest rates, reaching a seven-week high on Thursday.

The metal climbed to $4,271.33 per ounce, its highest level since June 18, as hopes of a diplomatic breakthrough in the Strait of Hormuz eased fears around inflation.

Nikos Tzabouras, senior market analyst at Tradu.com, said gold is trying to hold onto its recent gains amid optimism surrounding the Strait of Hormuz.

Market expectations for a September US rate hike have also eased to 55% from 67% two days earlier, further supporting gold prices.