Gold prices posted their strongest single-day advance since February, closing at their highest level in seven weeks.
The rally was driven by growing market optimism that a diplomatic breakthrough could soon ease tensions in the Strait of Hormuz, a critical global shipping chokepoint.
39% jump to $4,257.02 an ounce, reaching levels not seen since mid-June, as markets reacted to initial expectations of a diplomatic agreement.
Traders interpreted signals from the US administration regarding a potential rapid de-escalation as a positive catalyst for risk assets, including the precious metal.
The move marks a significant shift in sentiment after weeks of volatility linked to geopolitical uncertainty in the Middle East.
Earlier this month, spot gold had already seen a sharp 4.39% jump to $4,257.02 an ounce, reaching levels not seen since mid-June, as markets reacted to initial expectations of a diplomatic agreement. The latest session’s gains extend that momentum, with prices climbing more than 2% to hit a one-month high as shifting geopolitical dynamics and macroeconomic data converged to support the metal.
The Strait of Hormuz remains a focal point for global energy and trade flows.
Previous threats to disrupt tanker routes had weighed on market sentiment, but the prospect of a swift resolution has alleviated some of the pressure.