Gold prices rose to their highest level in almost seven weeks on Wednesday and were on track to post the biggest daily growth since February due to lower Treasury yields and hopes for progress on opening the Strait of Hormuz.
Spot gold climbed 4.4% to $4,256.85 per ounce by 1504 GMT, having hit $4,258.99, its highest since June 18, and broken above the 50-day moving average, which now supports it at $4,160
U.S. gold futures for December delivery rose 4% to $4,317.40
"The early adopters are getting back into precious metals as the likelihood of rate hikes has fallen since last week. The dollar has fallen sharply which helps. The Iran 'pause' helps as well," said Tai Wong, an independent metals trader.
The dollar traded near six-week lows against major currencies, while yield on.