Gold traded around $4,130 per ounce on Thursday, hovering near a two-week high as dip buying and safe-haven demand offset worries that higher oil prices could keep US interest rates elevated. Geopolitical tensions stayed in focus after Iran-backed Houthi militants claimed attacks on two Saudi oil tankers in the Red Sea, heightening the risk of broader disruptions to energy supplies. At the same time, President Donald Trump warned of strikes on Iranian infrastructure if shipping through the Strait of Hormuz is threatened, stoking fears of further military escalation.
Still, gold remained well below its January record, as climbing oil prices bolstered expectations that inflation could keep US interest rates higher for longer. Markets continue to price in two 25-basis-point rate hikes by March 2027, with a 70% probability that the first increase could come as early as September.
