Gold touches seven-week high on Strait of Hormuz reopening hopes
GLD•Other precious metals and upcoming data
Among other metals, spot silver XAG= gained 0.4% to $62.34 per ounce, platinum XPT= firmed 0.8% to $1,750.15, while palladium XPD= climbed 1% to $1,377.00.
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| 0600 | Germany Industrial Orders MM Jun |
| 0600 | Germany Manufacturing O/P Cur Price SA Jun |
| 0600 | Germany Consumer Goods SA Jun |
| 0830 | UK S&P Global PMI: MSC Composite Output Jul |
| 1230 | US Initial Jobless Clm 1 Aug, w/e |
Geopolitics and Fed expectations support demand
A proposed deal between Iran and Oman to help end five months of war between Iran and the United States would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a senior Iranian source and two regional officials told Reuters, one of the biggest concessions yet to Iran.
Growing Iran optimism has seen market expectations for a September U.S. rate hike ease to 55% from 67% two days earlier. FEDWATCH
Gold tends to perform better in a low interest-rate environment as it yields no interest.
Federal Reserve Governor Lisa Cook said she is open to the idea that the central bank may need to raise its short-term interest rate target to deal with “too high” levels of inflation in the U.S. economy.
Investors are also awaiting the July U.S. nonfarm payrolls report scheduled for release on Friday. The ADP national employment report showed on Wednesday that U.S. private payrolls growth slowed in July. Private employment increased by 44,000 jobs last month after a downwardly revised 95,000 gain in June.
