Gold Advances as Trump Touts Reopening of Hormuz This Week
Gold rose above $4,310 as President Trump said the Strait of Hormuz could reopen on Friday, easing energy and inflation shocks that have supported safe-haven demand.
Gold prices advanced on Tuesday after US President Donald Trump said the Strait of Hormuz could reopen on Friday, a development that would ease energy and inflation shocks that have roiled global markets. Bullion traded above $4,310 an ounce, building on a 2.2% gain from the previous session after the US and Iran announced an interim deal to end the war and lift maritime blockades. However, US allies expressed caution about how quickly flows of energy and other goods could resume, adding a note of uncertainty to the outlook.
The reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments, would reduce the risk of supply disruptions that have pushed energy prices higher and fueled inflation fears. For gold traders, lower inflation expectations typically reduce the appeal of the metal as an inflation hedge, but the immediate reaction suggests that safe-haven demand remains strong amid lingering geopolitical tensions. Live gold prices and charts on NowPrice show how the market is reacting to each new headline, with volatility expected to persist as the Friday deadline approaches.
Looking ahead, traders will monitor official statements from both the US and Iran, as well as any updates from allied nations. The potential for a swift reopening could cap gold's upside, while any delays or setbacks might reignite safe-haven buying. Key levels to watch include support at $4,300 and resistance near $4,350, with the broader trend still supported by central bank gold purchases and elevated geopolitical uncertainty.