[New York = E-Daily Seong Joowon Correspondent] International oil prices surged on news of Iran’s hardline control measures over the Strait of Hormuz, while gold—a prime safe-haven asset—gave up its gains and turned lower. This was driven by the sharp rise in oil prices, which simultaneously fueled inflation concerns and expectations of interest rate hikes by the Federal Reserve (Fed).

According to Reuters on the 6th (local time), as of 12:40 p.m. that day, the international spot price of gold was trading at $4,233.64 per ounce, down 0.3% from the previous trading day. Although the price briefly rose to its highest level since June 18 during the session, it gave up all of its gains. The previous day, gold prices had surged more than 4%, marking their largest daily gain since February.
In contrast, international oil prices surged. Brent crude traded at $82.54 per barrel, up 3.9%, while West Texas Intermediate (WTI) rose 3.3% to $77.71. This surge was driven by news that a standing committee of the Iranian parliament is reviewing a bill that would ban U.S. and Israeli ships from transiting the Strait of Hormuz and impose a fine of 20% of the cargo’s value for violations. According to CNBC, oil prices had fallen by about 8% this week after U.S. Treasury Secretary Scott Bessent stated on the 4th that “an agreement to open the strait, based on the premise of free passage, could be reached as early as the 5th,” but the sharp rise on this day largely offset those losses.
Jim Wikoff, an analyst at the American Gold Exchange, said, “It appears that concerns over rising inflation are affecting the gold market as well, should oil prices surge again.” Bob Haberkorn, chief strategist at StoneX, noted, “Starting yesterday (the 5th), some technical resistance levels were broken, and funds that had been on the sidelines began flowing back into the gold market,” but added, “Ultimately, the key determinant of gold prices remains the direction of the Fed’s monetary policy.” According to the CME FedWatch tool, traders are pricing in a 57% probability of an interest rate hike at the Fed’s September meeting and an 84% probability of a hike in December. When interest rates rise, the investment appeal of gold—which does not pay interest—becomes relatively lower. Spot silver fell 1.5% to $61.13 per ounce, and platinum dropped 0.7% to $1,723.20, while palladium rose 0.6% to $1,371.00.
Geopolitical risks are also driving the rise in oil prices. Yemen’s Houthi rebels claimed on the same day to have carried out missile and drone attacks targeting Saudi-led coalition forces in the Marib and Hadramaut regions, resulting in hundreds of casualties. However, there was no confirmation from the Saudi side. The Houthis also stated the previous day that they had attacked two Saudi oil tankers near Yanbu and the Gulf of Aden. John Kilduff, a partner at Again Capital, said, “The fact that activity is increasing on fronts other than the Persian Gulf serves as a reminder that the Red Sea shipping route remains vulnerable.” Before the war broke out, approximately one-fifth of the world’s crude oil and liquefied natural gas (LNG) supplies passed through the Strait of Hormuz. Exports of crude oil and condensate from Gulf oil-producing countries in July remained largely stable at a level about 40% lower than pre-war levels.
Dennis Kistler, Senior Vice President of Trading at BOK Financial, predicted, “The market remains focused on whether a U.S.-Iran agreement will be reached, and the longer the delay, the more momentum oil prices will gain toward a rise.” The market is also closely watching the U.S. July nonfarm payrolls report, set to be released on the 7th. This indicator is considered a key factor in gauging the direction of the Federal Reserve’s September interest rate decision.