Gold Hits Highest Since June on Hormuz Deal Hopes; Weak US Jobs Data Boosts Fed Hike Bets

Gold Price Today: The yellow metal rose to its highest level since late June on Wednesday, August 6 amid hopes for a reopening of the Strait of Hormuz and softer US jobless claims.

Spot gold briefly crossed $4,300 per ounce before trimming gains to settle at around $4,268 per ounce on Thursday. Gold futures were trading at $4,294.07 per ounce by 9:25 pm. 

Bullion enters its fourth consecutive winning session and nearing its  seven-week high mark. US jobless claims stood at around 199,000 in the week ended Aug. 1, according to Labor Department data released on Thursday, August 6. The streak has been lower than 200,000 was the longest since 1969. Continuing claims, a proxy for the number of people receiving benefits, rose to 1.8 million in the last week, in line with Bloomberg estimates.

Meanwhile, both Iran  and Oman reportedlty reached an agreement, outlining a framework for smooth shipping through the strait, raising the prospect of some energy flows resuming through the critical waterway.  The deal is expected to  be temporary and remain active for “two to four months,” Bloomberg News reported, Iranian Deputy Foreign Minister Kazem Gharibabadi told domestic media, that “this understanding does not mean the full reopening” of Hormuz.
According to US President Donald Trump, US's negotiations with Iran are underway and he will “see what happens." He expressed his  interest to make a deal with the Islamic Republic than end the war militarily. 

Since the US-Iran war began in late February, dold has fallen by nearly a fifth. The conflict has pushed energy prices soaring, raised inflationary pressures and the likelihood that rates will stay higher for longer. 

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