Context:

Gold rose for a fourth straight session to a seven-week high as softer oil, a weaker dollar, and expectations of a diplomatic breakthrough in the Middle East supported bullion, with traders eyeing further gains if the market clears resistance above the 200-day moving average. Optimism surrounding a potential Iran-Oman deal to ease tensions could limit energy-driven inflation and reduce urgency for rate hikes, amplifying gold’s appeal. Prices are buoyed by weaker Treasury yields and an expected soft U.S. payroll report, though a rebound in rates could cap gains. The broader precious-metals complex tracked gold higher while other metals posted mixed moves, signaling cautious but constructive momentum. Investors await upcoming U.S. payroll data for further direction.

Dive Deeper:

• Spot gold rose 1% to $4,285.84 per ounce, marking the highest since June 18, while U.S. gold futures climbed 0.9% to $4,345.80.

• Analysts suggested that a potential diplomatic breakthrough in the Middle East could reduce oil prices and lower the need for rate hikes, providing a favorable backdrop for gold.

• A proposed Iran-Oman accord was reported to give Tehran control over ships entering the Gulf through the Strait of Hormuz, a factor contributing to the upbeat sentiment.

• Oil prices slipped on the day, and the market has seen gold retreat about 19% since the February-fueled surge in risk, tied to energy-driven inflation concerns.

• Market expectations for a September U.S. rate hike eased to about 55% from 67% in previous days as the yield on the 10-year note fell and the dollar softened.

• The broader metals complex moved as follows: silver inched higher to $62.16, platinum rose to $1,764.10 after a fresh high since June, and palladium gained to $1,377.83.

• Investors await the July U.S. nonfarm payrolls report, where a soft result could bolster gold while a stronger print might pressure prices as rate expectations shift.