Gold Soars as Oil Prices Plummet Amid Diplomatic Hopes

Gold prices rose by 1% on Tuesday as oil prices declined to their lowest levels in three weeks. This drop in oil prices eased inflation concerns and reduced expectations of further U.S. interest rate hikes, giving gold a boost.

The Federal Reserve's recent decision to leave interest rates unchanged at its latest meeting has left markets waiting for additional signals on the future direction of monetary policy. Traders are currently pricing in a 57% probability of a U.S. interest rate increase in September.

Oil prices fell after comments from Qatari and U.S. officials raised hopes for a diplomatic resolution to the conflict involving Iran, potentially improving oil flows through the Strait of Hormuz.