Spot gold added 0.6% to $4,079.52/oz on Tuesday as oil extended a second straight day of losses on hopes for a deal to reopen the Strait of Hormuz. Treasury Secretary Scott Bessent said an agreement could come within days, while a cooler-than-expected U.S. job openings report reinforced the Federal Reserve's shift toward focusing on inflation.
Spot gold added 0.6% to $4,079.52/oz at 15:59 ET on Tuesday, as oil slumped for a second straight session after the U.S. touted an imminent reopening of the Strait of Hormuz. Gold futures gained 1.1% to $4,136.34/oz over the same session. Gold has recently held a trading range of roughly $4,000/oz and $4,100/oz, with no breakout on either side amid contrasting signals from a clouded interest-rate outlook and volatile Middle East geopolitics.
Bessent points to imminent Hormuz deal
U.S. Treasury Secretary Scott Bessent told CNBC he believed an agreement was being neared, saying "there is a chance we may have a deal today or tomorrow" to reopen the strait. Qatar said its own push for a diplomatic resolution was ongoing, with draft language on a possible deal circulating among negotiators even though there is no agreement yet to hold direct talks.
President Trump said revived talks with Iran would start soon, but Iranian foreign ministry spokesperson Esmaeil Baqaei denied that any such dialogue was taking place, prompting Trump to call Iranian leadership deceptive. Tehran did confirm that talks with Oman were ongoing over the status of the Strait of Hormuz, though traffic through the waterway remained scant and military tensions across the Gulf stayed elevated.
Cooler job openings keep Fed's inflation focus intact
The Bureau of Labor Statistics reported 7.359 million job openings in June, short of a 7.454 million estimate. May's reading was revised down to 7.537 million from 7.594 million. Openings had already surged to 7.585 million in April, the highest level since May 2024.
Hires and total separations in June held steady, with quits, layoffs and discharges also flat, suggesting the broader labor market remained strong. That resilience supports the Fed's recent shift toward prioritizing its inflation mandate, with its employment goal now appearing well in hand. But oil-price volatility tied to the Middle East conflict has upended inflation dynamics and divided Fed policymakers over the rate path.
ING analysts said uncertainty over the Fed's policy path remains elevated as investors weigh persistent inflation risks against signs of moderating economic momentum. Friday's July nonfarm payrolls report will cap the week's labor-market data.
Source: Commodities & Futures News
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