Gold hits seven-week high on hopes of Hormuz reopening

Global gold prices rose for a fourth straight session, reaching their highest level in seven weeks as hopes grew that the Strait of Hormuz could reopen, easing geopolitical tensions and restoring normal shipping flows.

According to Reuters, spot gold gained 1 per cent to $4,285.69 per ounce, its highest level since June 18, while US gold futures climbed 0.9 per cent to $4,345.50 per ounce.

Analysts said the rally was supported by a weaker US dollar and lower Treasury yields, which boosted demand for the precious metal. Market sentiment also improved following reports of a proposed Iran-Oman agreement, seen as a potential step toward reducing tensions between Iran and the United States and reopening the key energy shipping route.

The prospect of renewed maritime traffic through the Strait of Hormuz has strengthened investor confidence, helping drive gold prices higher.