Gold Surges to Highest Level Since June Amid Weaker Dollar

The price of gold surged on Wednesday, marking its biggest single-day gain in more than five months. The SPDR Gold Shares ETF (GLD) jumped over 4% on the day, with spot gold trading at $4,252 an ounce, its highest level since June 18. This rally was driven by a weaker U.S. dollar and renewed hopes that the Strait of Hormuz could reopen.

President Donald Trump told Fox News on Tuesday that the U.S. and Iran were 'having very good discussions,' adding that the Strait of Hormuz could reopen soon. He also said that the negotiations prompted him to call off planned military strikes on Iran over the weekend.

Long-time gold advocate Peter Schiff pointed out that the weak July ADP jobs report was a key catalyst behind the precious metals rally. Private employers added 44,000 jobs in July, down from a revised 95,000 in June and below economists' expectations of 75,000.