Gold Surges on Strait of Hormuz Hopes and Weaker Dollar

Gold prices rose for a fourth consecutive day on Thursday, reaching their highest level in seven weeks. The metal's value increased by 1% to $4,285.69 per ounce, with U.S. gold futures also rising 0.9% to $4,345.50.

The price increase was driven by hopes of a deal between Iran and Oman to end the five-month war between Iran and the United States. A proposed agreement would give Tehran control over ships entering the Gulf through the Strait of Hormuz.

A weaker U.S. currency also contributed to the rise in gold prices, as it makes dollar-priced commodities cheaper for other currency holders. The yield on benchmark U.S. 10-year notes fell and the U.S. dollar index was under pressure.