Gold Rises on Hopes for Strait of Hormuz Deal, Lower US Yields
Gold prices rose by 0.75% on Tuesday as investors bet on a potential deal to reopen the Strait of Hormuz, easing inflation pressures and pushing US Treasury yields lower.
The yellow metal reached a two-day peak of $4,106 XAU/USD amid improved risk appetite and a decline in crude oil prices, which fell nearly 5% to $76.09 per barrel.
US President Donald Trump's reposting of an article on August 2 stating that 'a deal is imminent' added to the optimism surrounding a potential agreement between Iran and Oman on the Strait of Hormuz.
The US Dollar Index (DXY) fell by 0.05% as markets priced in lower inflationary prints, while the Federal Reserve's odds of raising rates at the September 16 meeting increased to nearly 59%, according to Prime Terminal.