Gold prices climb as Iran confirms open Strait of Hormuz

Gold prices extended their gains on Friday, supported by a weakening dollar and diplomatic signals from the Middle East that eased global energy concerns. Spot prices for the yellow metal rose 1.5% to $4,860.39 per ounce, while U.S. gold futures increased 1.6% to reach $4,883.20.

The market rally followed statements from the foreign minister of Iran confirming that the Strait of Hormuz remains open for maritime traffic. This announcement contributed to a decrease in Brent Crude Oil prices, which helped to soothe inflation fears and bolstered expectations for future interest rate cuts.