Gold Prices Soar to $4,308 Amid Strait of Hormuz Talks and Central Bank Buying

Gold prices surged to $4,308 on Wednesday, marking the metal's largest one-day gain in half a year. The rally was fueled by a statement from President Trump indicating that Iran and Oman are discussing the reopening of the Strait of Hormuz, a crucial waterway for global oil shipments.

The proposed framework would see Iran manage inbound traffic along a northern corridor near its coastline, while Oman would supervise outbound vessels via a southern passage. This development has significant implications for the global oil market, as the strait handles 20% of seaborne oil shipments globally.

Central bank demand was also a key factor in gold's price increase. Data showed that central banks expanded their gold reserves at a faster pace than expected, particularly among nations that had been relatively inactive in the gold market recently.