Spot Gold Surges 4.2% Amid Trump's Remarks and Central Bank Buying

Spot gold prices surged by 4.2% in a single day to hit $4,328 per ounce, marking the largest increase in five months and breaking above a six-week descending triangle consolidation pattern.

This strong rally was driven by multiple catalysts, including Trump's remarks on the Strait of Hormuz, which rekindled geopolitical risk premiums. The US president stated that Iran is actively negotiating to reopen the waterway with the US aiming to announce the deal on July 5.

Global central banks' gold purchases in Q2 surged 62% year-over-year to a record high, with South Korea re-entering the market after a 13-year absence. Poland was the largest buyer, acquiring 51 tonnes and raising its total reserves to a record high of 632 tonnes.