Gold gained for a third day, as the prospect of an interim deal to reopen the Strait of Hormuz eased concerns about the outlook.Itering the inflation outlook and reducing the odds of the Federal Reserve raising interest rates, the market reacted positively.

The news Nuna that a temporary agreement could open the vital oil passage calmed investors. Gold, often subconsciously linked to geopolitical risk, saw a modest upward move, reflecting the reduced risk premium.

In the broader context, investors are watching the Fed’s policy stance closely. The reduced probability of rate hikes is reflected in the gold price, as a lower interest rate environment typically supports higher gold values.

While the market remains volatile, the immediate relief from potential supply disruptions in the Middle East is a key factor driving the recent gains.