Gold Soars to Seven-Week High Amid Weakening Dollar
Gold prices rebounded to a seven-week high on Thursday, reaching $4,265.22 an ounce, as hopes of progress over the Strait of Hormuz weakened the dollar and Treasury yields.
The metal's latest rally reflects an unusual feature of the Middle East conflict, where disruption to energy supplies initially hurt bullion but is now moving in reverse.
A proposed temporary arrangement between Iran and Oman could restore shipping through the strait, reducing fears of another energy-driven inflation shock and supporting bonds.
The dollar's appeal has been lowered, making gold more attractive as a safe-haven asset. However, the metal remains 19% below its level when the US-Iran conflict began on February 28.
Attention now turns to Friday's official US employment report, which could impact rate-rise expectations and further influence gold prices.