Gold ran to its highest level in almost two months on Tuesday as traders weighed signs of movement toward a deal that would reopen the Strait of Hormuz, before a turn higher in oil pulled bullion back from its peak ahead of a US inflation reading that will shape the Federal Reserve’s appetite for another interest rate hike.
Comex December gold touched $4,495.00 an ounce, up 1.7% and its highest since mid-June, before fading to $4,440.00 for a gain of 0.5% by midday in New York. Spot gold was little changed around $4,395 after rising as much as 1%. Bullion has recovered every dollar lost in the sub-$4,000 dip a fortnight ago, helped by last week’s shock US jobs contraction and a run of central bank buying.
Comex September silver climbed as much as 2.2% to $66.685 an ounce, the highest since June, before reversing to $65.035, down 0.4% on the day. Spot silver fell about 1%. The white metal is still down roughly 9% in 2026, the hangover from January’s futures squeeze and the war-driven collapse that followed, even with the market expected to stay in deficit through the year. Platinum was flat and palladium fell 0.9%.
Pakistan signalled a possible agreement that would ease the tensions strangling energy markets, Bloomberg reported, and cheaper crude would take pressure off the Fed to raise rates to curb inflation. Less aggressive tightening is supportive of gold, which pays no interest. By lunchtime the trade had run in reverse, with US crude turning higher to trade above $83 a barrel and Brent pushing towards $89.
President Donald Trump hardened his position on Monday, saying Tehran should pay reparations for people killed in attacks linked to the Islamic Republic and in domestic protests, demands Iran is unlikely to accept.
“To continue its recent rally, gold needs to hold between $4,360 and $4,370 an ounce, where we saw some local peaks back in June,” said Ole Hansen, head of commodity strategy at Saxo Bank, in a Bloomberg note. “Otherwise, some consolidation can be expected with the headwinds from oil, yields and the dollar.” Spot gold is sitting barely $25 above that band, and Hansen said longer-term traders want to see a break back above the 200-day moving average before getting involved.
Miners sit it out
Agnico Eagle was the best of the majors, up 1.2%, while Newmont slipped 0.3%, Wheaton Precious Metals was flat and Franco-Nevada fractionally lower. Gold Fields fell 2.2% and Harmony Gold 2.5%. Barrick Mining, down 0.5%, named Sebastiaan Bock chief executive of its Rest of World division, the appointment landing a day after investors punished the $1.95 billion Fourmile settlement with Newmont. Among the silver names Coeur Mining added 0.7%, Hecla Mining eased 0.2% and Pan American Silver was unchanged.
Gold is up about 1% for 2026 and remains close to a fifth below where it traded before the war began in late February.
(With files from Bloomberg and Reuters)