Gold eases as traders weigh Fed path and Hormuz talks

Gold slipped for a second straight session on Thursday as traders balanced sticky U.S. inflation against signs of easing tension in the Middle East. The move left bullion under pressure even as markets continued to monitor the wider risk backdrop, including developments around the Strait of Hormuz, a crucial shipping lane for global energy flows.

Inflation keeps the Fed in focus

Spot gold was down 0.3% at $4,579.85 an ounce, while U.S. gold futures fell 0.5% to $4,632.44. The dollar held near a one-week high after stronger-than-expected U.S. inflation figures reinforced expectations that the Federal Reserve could still raise rates before year-end. That backdrop is usually less supportive for non-yielding assets such as gold.

Attention has now turned to Kevin Warsh’s first Jackson Hole appearance as Fed chair on Friday, where investors will look for clues on the policy outlook. Any sign that the central bank remains wary of inflation would matter for bullion because higher rates tend to strengthen the dollar and raise the opportunity cost of holding precious metals.

Strait of Hormuz headlines ease some safe-haven demand

The geopolitical tone was less acute after reports of an interim ceasefire understanding between the United States and Iran, with assurances about uninterrupted commercial passage through the Strait of Hormuz. Iranian and Omani officials confirmed they had agreed on a temporary maritime route for ships using the waterway, although Tehran said the talks were still ongoing and no final accord had been completed.

The Strait of Hormuz is one of the world’s most sensitive energy chokepoints, so any easing in tensions there can reduce urgency in haven markets. Qatar’s prime minister and foreign minister is due in Tehran on Thursday in an effort to restart peace talks between Washington and Tehran, adding another diplomatic layer to the situation.

For gold traders, the combination of firmer U.S. price data and a slightly calmer geopolitical tone was enough to trim demand for the metal. The market now faces a familiar cross-current: policy expectations on one side and risk-aversion on the other, with both likely to shape short-term price action.

This article is not investment advice and recommends no asset, level or direction; a single session's move is not evidence of a trend. For background see Currency, Cross Rate, Currency Pair, and for terms the finance glossary.