Gold Surges Amid US-Iran Deal Hopes and Inflation Uncertainty

Gold prices rose by up to 1.1% on August 11-12, as traders weighed the prospects for a deal to reopen the Strait of Hormuz while awaiting US inflation data that could provide fresh clues on the Federal Reserve's interest-rate path.

Pakistan's defense minister said the US and Iran are 'close to some sort of arrangement' to reopen the waterway, which is crucial to global energy flows. Despite this development, bullion rose as much as 1.1% to return above $4,400 an ounce, a day after pulling back from a two-month high.

The move in gold prices comes ahead of the release of US inflation data, which could provide fresh clues on the Federal Reserve's interest-rate path. The Fed has been closely watching inflation levels to determine its next course of action regarding interest rates.