Gold prices moved higher amid a flight to safety driven by escalating geopolitical tensions, including a UK-Russia drone standoff and increased conflict in the Strait of Hormuz. [1, 4, 8]
The rally is also supported by a weaker U.S. dollar and a pullback in Treasury yields, as recent softer-than-expected U.S. inflation and retail sales data have led traders to reduce bets on a September Federal Reserve interest rate hike. [2, 5, 9] Market participants are now awaiting the release of the latest FOMC meeting minutes for further policy clues. [3, 6]