Gold Surges on Diplomatic Breakthrough in Strait of Hormuz

Gold has surged to a seven-week high, reaching $4,294.60 per ounce on Wednesday and extending gains to $4,334.40 on Thursday.

The move is largely attributed to a diplomatic breakthrough in the Strait of Hormuz, where Iran and Oman have agreed on a shipping corridor through the strait, pending final agreement on transit fees and vessel inspections.

The easing of geopolitical tensions has led to a 10% drop in oil prices this week, reducing inflation concerns and pressure on the Federal Reserve to maintain its tightening bias.