Hormuz Deal and Asian Demand Lift Gold to Fresh High

The price of gold has surged to $4,294.60 after posting its sharpest single-day gain in six months, driven by a diplomatic thaw over the Strait of Hormuz and strong demand from Asia.

A reported agreement between Iran and Oman to reopen the critical oil shipping route has removed pressure on crude prices but paradoxically lifted gold, which benefits from a weaker dollar and lower bond yields.

China's import surge is staggering: 864.95 tonnes of gold in the first half of this year, an 89.1 percent increase year-over-year. June alone saw 173.34 tonnes, the strongest monthly figure since March 2024.

The People's Bank of China has added to its reserves for 20 consecutive months, with a quarterly purchase of 33 tonnes, its largest since late 2023.