Hormuz talks ease oil and inflation concerns
US President Donald Trump said his administration had held “very good discussions” with Iran, strengthening hopes of progress towards ending the five-month conflict.
Iran separately announced that it had reached a preliminary agreement with Oman on the coordinates of a temporary shipping channel through the Strait of Hormuz.
The proposed route could allow some energy shipments to resume through the strategically important waterway, although the arrangement remained subject to further approval and negotiation.
Iranian Deputy Foreign Minister Kazem Gharibabadi told local media that the temporary route could operate for two to four months.
“This understanding does not mean that the strait will be fully reopened,” he said.
The prospect of renewed shipping pushed oil prices lower, easing some concerns that elevated energy costs would intensify inflation and force the Fed to raise interest rates more aggressively.
Gold had lost nearly one-fifth of its value since the US-Iran war began in late February. The conflict drove energy prices higher, increased inflationary pressure and strengthened expectations that US borrowing costs would remain elevated.
Gold holds gains in Asian trading
Spot gold added a further 0.4% to US$4,262.66 an ounce at 7.31am Singapore time on Thursday (August 6).
Bullion was trading at about US$4,260 after gaining approximately 4.1% during the previous session, its largest rise since February 3.
Silver rose 0.1% to US$62.14 an ounce after climbing by more than 4% in the previous session. Platinum and palladium also advanced.
South Korea’s central bank also announced plans to establish a framework with domestic producers, Korea Exchange and Korea Securities Depository to purchase locally produced gold at international market prices.
Reuters reported that the plan would represent the Bank of Korea’s first gold purchase in 13 years and was intended to diversify its supply sources and strengthen its foreign reserves.
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