Gold Hits $4,300 as Strait of Hormuz Tensions Drive Biggest Weekly Gain Since January

TLDR

• Gold rose 0.6% to $4,264 an ounce on Friday, heading for its biggest weekly gain since January
• Escalating tensions in the Strait of Hormuz are driving safe-haven demand for gold
• Markets are pricing in roughly a 55-60% chance of a Fed rate hike in September
• Chinese gold ETFs have seen 14 straight sessions of inflows, supporting prices
• Friday’s U.S. jobs report is expected to set the next direction for gold prices

---

Gold prices climbed further on Friday, building on overnight gains as tensions in the Strait of Hormuz kept investors buying safe-haven assets. Gold spot prices rose 0.6% to $4,264.22 an ounce, while gold futures gained 0.6% to $4,323.07.

Silver also moved higher, rising 1.2% to $62.26 an ounce. Platinum gained 0.6% to $1,740.05.

The weekly gain is on track to be gold’s largest since January, with New York gold futures up around 1% in early trading to $4,343.50 a troy ounce.

Iranian media reported that Tehran struck what it called “hostile targets” in the Strait of Hormuz and planned to block U.S. and Israeli vessels from using the waterway. This came after earlier reports suggested Iran and Oman were close to a deal to reopen shipping lanes.

🇮🇷 Iran just dropped a draft plan that basically says: “We’ll open Hormuz when we’re good and ready… and on our terms.”

They’ve lined up a new route with Oman, but only if the U.S. lifts its blockade first.

American and Israeli ships? Banned. Anything they call “hostile”?… pic.twitter.com/UVGWbw2Ica

— Mario Nawfal (@MarioNawfal) August 7, 2026

Yemen’s Houthi movement also claimed responsibility for a large-scale attack on Saudi-backed forces, raising fears the conflict could spread further across the region.

Gold briefly broke above $4,300 on Thursday after optimism about a Hormuz deal sparked buying. That rally faded when the escalation resumed, reviving concerns about higher energy prices and inflation.

Fed Rate Outlook Weighing on Gold

Traders are now pricing in roughly a 55-60% chance of a U.S. rate hike in September. The Financial Times reported that Federal Reserve Chair Kevin Warsh is prepared to raise borrowing costs if inflation stays elevated in the coming weeks.

The U.S. Dollar Index held around the 100 level, giving little clear direction to gold prices.

St. Louis Federal Reserve President Alberto Musalem said policymakers cannot wait for productivity growth to solve the inflation problem on its own.

Lower oil prices this week, driven by hopes of a Hormuz resolution, helped ease some inflation fears. Lower inflation expectations have reduced pressure on the Fed to hike, which in turn has supported gold.

Chinese demand has also been a factor. Gold-backed ETFs in China have recorded 14 consecutive sessions of inflows, helping keep prices stable despite broader economic pressures.

Senior market analyst Tony Sycamore at IG said gold may have confirmed a bottom near the late-June low of $3,942. He said holding above that level keeps the path open toward the 200-day moving average near $4,489.

Sycamore added that a break above $4,489 could open the door toward the $5,000 mark.

All eyes are now on Friday’s U.S. nonfarm payrolls report, which is expected to be the key driver of gold’s next move.