Lower bonds yields, Iran talks set gold on track for largest daily growth since February

Gold prices rose to their highest level in almost seven weeks on Wednesday and were on track to post the biggest daily growth since February due to lower Treasury yields and hopes for progress on opening the Strait of Hormuz.

Spot gold XAU= climbed 4.1% to $4,242.96 per ounce by 12:50 p.m. ET (1650 GMT), having hit $4,258.99, its highest since June 18, and broken above the 50-day moving average, which now supports it at $4,160.

U.S. gold futures GCcv1 for December delivery rose 3.6% to $4,303.00 per ounce.

"The early adopters are getting back into precious metals as the likelihood of rate hikes has fallen since last week. The dollar has fallen sharply which helps. The Iran 'pause' helps as well," said Tai Wong, an independent metals trader.