Gold rallies as market sentiment shifts on Iran deal hopes

Brent crude dipped below $80 per barrel following reports of a possible plan involving Oman to mitigate regional tensions. While this prospect offers a glimmer of stability, the market remains cautious about whether Washington will accept an arrangement that leaves Tehran in control of traffic through the Strait of Hormuz. The uncertainty surrounding energy costs and the broader geopolitical landscape has forced equity markets into a defensive stance, with tech-heavy indices like the Nasdaq retreating following disappointing earnings from firms including AMD and SpaceX.

Contrasting signals from Federal Reserve officials further complicate the outlook. Board governor Lisa Cook signaled a readiness to raise rates if inflation remains persistent, while San Francisco Fed President Mary Daly expressed comfort with the current policy path. Investors are now shifting their focus toward tomorrow’s July U.S. payroll report to gauge the health of the labor market. With private-sector job gains recently falling below forecasts, the cooling data suggests that the aggressive rate-hiking cycle may soon reach a plateau, providing a necessary tailwind for gold as it attempts to recover from a 20% decline since the conflict began in February.