Gold continues to gain after Iran announced the opening of the Strait of Hormuz

Gold continued to achieve gains today, Friday, supported by the decline in the dollar and statements by Iranian Foreign Minister Abbas Araqchi that the Strait of Hormuz has become completely open to all commercial ships throughout the remaining period of the ceasefire, which led to a decline in oil prices and calmed concerns about inflation. Gold in spot transactions rose 1.5% to $4,860.39 per ounce. The precious metal has risen by more than 2% since the beginning of the week.
US gold futures rose 1.6% to $4,883.20.

Araqchi said, in a post on the “X” platform, “The passage of ships in the strait will be via the coordinated route as already announced by the Iranian Ports and Maritime Organization.” US President Donald Trump expressed his confidence in the possibility of reaching an agreement soon to end the war with Iran, although the timing is still unclear.

Peter Grant, Vice President of Zanner Metals and its chief metals expert, added: “The reopening of the Strait is an important event, and it is expected that the pressure on oil prices will calm concerns about inflation and revive expectations of lowering interest rates, which is a good thing for gold.”

He stated that gold prices may achieve gains in the short term, with prices exceeding the level of five thousand dollars per ounce.
The dollar and oil prices continued to decline after the announcements of opening the Strait of Hormuz, making primary commodities denominated in the US currency more accessible to holders of other currencies.

Gold prices fell in spot transactions after the outbreak of the US-Israeli war on Iran on February 28. The rise in energy prices has fueled fears of inflation and prompted markets to reduce their expectations of a cut in interest rates.

Although gold is considered a safe haven in the face of inflation, high interest rates reduce demand for this asset, which does not generate a return. Meanwhile, sources said that Indian banks have stopped requests to import gold and silver from foreign suppliers, as tons of the two precious metals were stuck in the ports due to the lack of an official government decision authorizing their import. As for other precious metals, silver rose in spot transactions by 4.6% to $81.99 per ounce, and rose 8% during the week. Platinum increased 2.1% to record $2,130.42. Palladium gained 2.4%, reaching $1,588.44. Both metals are heading towards weekly gains.