Gold prices climbed as Iran reopened the Strait of Hormuz to commercial shipping. This de-escalation in the Middle East caused oil prices to fall.
Easing inflationary pressures renewed market expectations for central bank interest rate cuts. Spot gold increased 1.7% to nearly $4,900 an ounce, marking its highest level in almost a month.
The metal achieved its fourth consecutive weekly gain. A weakening U.S. dollar further supported the price rally.