Gold Soars Above $4,100 Amid Hormuz Deal Hopes

Gold prices continue to rise, boosted by hopes of an interim agreement to reopen the Strait of Hormuz and easing inflationary concerns.

The XAU/USD price has broken above $4,100, with analysts at ING noting that lower energy prices have eased some inflation concerns, making a more supportive backdrop for gold.

However, this support is tempered by ongoing uncertainty over US interest rates, and markets continue to assess the outlook for US monetary policy following last week's Federal Reserve meeting.

The Fed's hawkish commentary from policymakers, including Fed's Schmid, has reinforced a bias toward additional restraint, even if some pressures stem from supply shocks.