August Gold futures rebounded for a second consecutive day, continuing to hold critical technical support at the 200-day moving average. Today's rally saw gold futures reach a high of 4,627.10, closing up 1.4%. The upward move is heavily driven by fundamental shifts, as progress on a tentative U.S.-Iran memorandum of understanding points toward an extended ceasefire and the reopening of the Strait of Hormuz. This geopolitical breakthrough has significantly cooled energy price concerns and tempered the long-term inflation outlook. Consequently, CME FedWatch Tool pricing has shifted sharply away from a July interest rate hike. Lower interest rate expectations are actively providing a tailwind for gold by reducing the opportunity cost of holding non-yielding assets, even as the potential resolution risks unwinding the metal's geopolitical risk premium.
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