Gold Prices Surge on Easing Inflation Concerns and Iran-Oman Deal

Gold prices closed 0.25% higher at $148,858 on Wednesday, buoyed by easing concerns over inflation and expectations that the US Federal Reserve may not need to tighten monetary policy as aggressively as previously feared.

The news of a potential agreement between Iran and Oman to partially reopen the Strait of Hormuz helped reduce geopolitical risk premiums, while expectations for a September US rate hike eased to 55% from 67% two days earlier.

According to the World Gold Council, global second-quarter gold demand remained stable at 1,268.9 tonnes as robust central bank purchases of 289 tonnes compensated for ETF outflows.