04.08.202613:52:25UTC+00Gold Climbs as Markets Monitor US-Iran Diplomacy

Gold climbed 0.7% to $4,080 per ounce on Tuesday as investors weighed diplomatic efforts to ease US-Iran tensions and their implications for oil prices, inflation, and the Federal Reserve’s policy outlook. US Treasury Secretary Scott Bessent said an agreement to reopen the Strait of Hormuz could be reached as early as today or tomorrow, while Qatari Foreign Ministry spokesperson Majed al-Ansari noted that talks were still underway, with de-escalation and restoring traffic through the key waterway as the main objectives. These developments led markets to scale back expectations of a Fed rate hike in September, with the implied probability slipping to 57%. Investors are now looking to upcoming US labor market data for further guidance on the Fed’s next steps. New York Fed President John Williams said inflation continues to ease gradually but stressed that policymakers remain prepared to raise rates if price pressures fail to subside.