Gold extends rally to $4,250 on softer dollar

August 06, 2026 (MLN): Gold prices climbed to a seven-week high, buoyed by a weaker dollar, falling Treasury yields, and growing optimism over a potential reopening of the Strait of Hormuz.

Currently, spot gold is slightly up 4.14% to $4,250.05 an ounce as of [10:33 am] PST, according to data reported by Mettis Global.

The rally follows reports of a proposed deal between Iran and Oman aimed at ending five months of conflict between Iran and the United States.

 Under the arrangement, Tehran would be granted control over vessels entering the Gulf through the Strait of Hormuz, according to Reuters.

Higher rates typically dampen demand for gold, given the metal yields no interest.

Sentiment was further supported as market expectations for a September U.S. rate hike eased to 55%, down from 67%.

Benchmark U.S. 10-year Treasury yields slipped, while the U.S. dollar index also came under pressure  a weaker greenback makes dollar-denominated commodities more affordable for holders of other currencies.

Investor focus now shifts to Friday's July U.S. nonfarm payrolls report, which could shape the near-term trajectory for rate expectations.

Other metals: Spot silver edged down 0.1% to $62.02, while platinum gained 1.2% to $1,755.18, also hitting its highest level since June. Palladium advanced 0.8% to $1,374.33, marking its third straight session of gains.

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