05.08.2026 15:50
Gold price gains accelerated as news that an agreement could be reached between the US and Iran regarding the Strait of Hormuz eased inflation concerns. Gaining more than 4% during the day to climb to $4,200 per ounce, silver also reached $62.22, its highest level since July 7.
Expectations that an agreement could be reached between the US and Iran regarding the Strait of Hormuz eased inflation concerns, while gold prices saw a sharp surge. Gaining more than 4 percent during the day, the ounce price of gold reached $4,200, while silver also hit its highest level since July 7.
DIPLOMACY WIND EASES INFLATION CONCERNS
The possibility of a temporary agreement to restore maritime traffic in the Strait of Hormuz strengthened expectations in the markets that inflationary pressures would decrease. With the weakening probability of a US Federal Reserve (Fed) interest rate hike, gold extended its rally to a third consecutive session. While the Qatari administration reported that a draft text had been prepared to normalize traffic in Hormuz, Axios reported that Washington, Tehran, and Oman were close to reaching an agreement and that the US was expected to make an official announcement shortly.
OUNCE GOLD SAW $4,200
Under the influence of diplomatic steps, sharp rises were recorded in precious metals markets:
- Ounce Gold: Rose to the $4,200 level with a premium exceeding 4 percent during the day.
- Silver: Climbed to $62.22 with an increase close to 4 percent, testing its highest level since July 7.
- Other Metals: Platinum and palladium were also among the other precious metals that gained value.
CHINA SUPPORT FOR GOLD PRESSURED BY WAR
The US-Iran tension that escalated in late February had fueled global inflation by driving up energy prices, causing sharp declines in gold prices due to concerns that interest rates would remain high for a long time. Despite this, the Fed kept interest rates steady at its last meeting without making any change to monetary policy.
In recent weeks, Chinese institutional investors' shift towards bullion has laid the groundwork for prices to remain above the critical psychological threshold of $4,000 per ounce. Peace steps taken in the Middle East, on the other hand, accelerated the recovery momentum in gold prices.