Hormuz Reopening Sends Gold Above $4,300 as Interest Rate Pressure Eases

Gold prices have surged above $4,300 an ounce as progress is made on reopening the Strait of Hormuz.

The development has eased pressure on the Federal Reserve to raise interest rates, which is positive for precious metals like gold.

Iran and Oman have reached a temporary agreement on a shipping route through the strait, which could resume energy flows in two to four months.

President Donald Trump said US negotiations with Iran are ongoing, and he would prefer to make a deal rather than end the war militarily.

Fed Governor Lisa Cook reiterated that she is ready to raise rates if inflation doesn't slow down, but for now, the central bank has backed off from raising interest rates.