Gold futures rise as Strait of Hormuz shipping effort is scaled back
Updated
Updated · Barron's · May 6
Gold futures rise as Strait of Hormuz shipping effort is scaled back
13 articles · Updated · Barron's · May 6
In early New York trading, prices climbed 2.2% to $4,668.80 a troy ounce after President Donald Trump eased an effort to guide commercial ships through the waterway.
The move reduced the risk of an immediate escalation in tensions between the United States and Iran, while conflict fears continued to support demand for gold as a safe-haven asset.
ING analysts said a more durable truce could lower inflation risks and reduce expectations of Federal Reserve rate hikes, shifting focus to US Treasury borrowing plans and upcoming economic data.
Why is gold's 'war premium' fading now despite the conflict in the Strait of Hormuz re-escalating?
Has geopolitical risk permanently replaced interest rates as the main driver for gold prices?
Are military escorts the only option left to secure the vital Strait of Hormuz?