Forex
Gold Soars Nearly 7% as Geopolitical Tensions Ease
Gold futures have surged nearly 7% in three sessions, with December contracts climbing from around $4074 to almost $4363.60 per ounce.
The rally has been fueled by a combination of geopolitical developments, changing Federal Reserve expectations, and weakness in the US dollar and Treasury yields.
The easing of tensions in the Middle East, particularly reports of progress toward an agreement between Iran and Oman, have raised hopes that risks to global energy supplies may gradually ease.
A decline in oil prices has encouraged investors to reduce expectations for additional Federal Reserve tightening, with markets now pricing in roughly a 55% probability of a September rate hike.