Gold touches seven-week peak on Strait of Hormuz reopening hopes
GLD•Gold rises to seven-week high
Gold advanced for a fourth session on Thursday and touched its highest level in seven weeks, helped by a softer dollar and lower Treasury yields, on growing hopes over the Strait of Hormuz reopening.
Spot gold XAU= was up 0.5% at $4,265.22 per ounce by 0330 GMT, after hitting its highest level since June 18 earlier. On Wednesday, bullion posted its biggest daily gain since February.
U.S. gold futures GCcv1 rose 0.5% to $4,324.60.
Dollar, yields and other precious metals
The yield on benchmark U.S. 10-year notes fell and the U.S. dollar index =USD was also under pressure. A weaker U.S. currency makes dollar-priced commodities cheaper for other currency holders.
Investors are awaiting the July U.S. nonfarm payrolls report scheduled for release on Friday. The ADP national employment report showed that U.S. private payrolls growth slowed in July.
Among other metals, spot silver XAG= fell 0.1% to $62.02, platinum XPT= was up 1.2% to $1,755.18 after hitting its highest since June.
Palladium XPD= climbed 0.8% to $1,374.33, up for a third consecutive session.
Middle East developments and rates outlook support bullion
"The sharp rally came on building optimism that a diplomatic breakthrough in the Middle East is close to being finalised. This in turn would keep downside pressure on oil prices and reduce the need for central banks to raise rates, providing a clear tailwind for gold," IG market analyst Tony Sycamore said.
