Gold Prices Surge to Two-Month High on Hormuz Hopes and US Rate Bets

Gold prices surged to a two-month high on Tuesday due to hopes of a potential accord to restore passage through the Strait of Hormuz. According to Bloomberg, Pakistan signaled a possible deal that could alleviate energy market pressures.

The precious metal climbed to $4,495.00 per ounce in December delivery Comex gold, its highest point since mid-June. However, it later eased to $4,440.00 after crude prices increased.

A less aggressive tightening path by the Federal Reserve tends to benefit gold, given its lack of yield. To maintain support and extend its recent advance, gold must stay above the range between $4,360 and $4,370 an ounce.