GLD is trading 3.1% up today as progress toward a deal to reopen the Strait of Hormuz pushes oil prices lower, easing medium-term inflation worries and reducing the perceived need for further Federal Reserve rate hikes.
- A softer U.S. dollar and slightly lower Treasury yields are further boosting demand for non-yielding gold as both an inflation hedge and a geopolitical safe-haven.
- Investors are rotating capital into precious metals, pricing in a less hawkish Federal Reserve path despite lingering Middle East risks.