Iran Diplomacy Boosts Gold to $4080
Gold prices rose approximately 0.7% to the US$4,080 per troy ounce level during Tuesday's trading (August 4). Investors are closely monitoring diplomatic developments between the United States and Iran, as well as their impact on oil prices, inflation, and Federal Reserve interest rate policy.
US Treasury Secretary Scott Bessent stated that an agreement to reopen the Strait of Hormuz could be reached within a day or two. Qatar also indicated that negotiations are ongoing, with a primary focus on de-escalating the conflict and restoring the strategic shipping lane.
Hopes for the reopening of the Strait of Hormuz could potentially put downward pressure on oil prices and alleviate inflation risks stemming from the energy sector. This situation has led the market to lower its expectations for a Federal Reserve interest rate hike in September, with the probability dropping to around 57%.
Gold also received support from US job opening data that came in lower than expected. Weaker labor demand could reduce pressure on the Fed to raise interest rates again, thereby enhancing the appeal of gold, a non-interest-bearing asset.
Analysis: Gold sentiment remains generally positive as expectations for interest rate hikes decline. However, statements by John Williams—indicating the Fed is prepared to raise rates if inflation persists—could limit the rally. The US$4,080–US$4,100 range serves as the key resistance area, while US$4,050 acts as the nearest support level.
Source: newsmaker.id
