Gold rises as oil extends slide to a second straight day, easing inflation fears

Gold prices ticked up on Tuesday, as oil slumped for a second straight session after the U.S. touted an imminent reopening of the critical Strait of Hormuz. Precious metal market participants also gauged labor market data for further cues on monetary policy. 

At 15:59 ET (19:59 GMT), spot gold added 0.6% to $4,079.52/oz, while gold futures gained 1.1% to $4,136.34/oz.

Gold has recently remained in a trading range of between around $4,000/oz and $4,100/oz, with a lack of a breakout on either side amid contrasting signals from a clouded outlook on interest rates and volatile geopolitical developments in the Middle East. 

The focus remained on any progress in diplomatic talks between Washington and Tehran. U.S. Treasury Secretary Scott Bessent told CNBC that he believed an agreement was being neared, noting that "there is a chance we may have a deal today or tomorrow" to open the Strait of Hormuz and "move towards a more normalized position in this conflict."

Meanwhile, Qatar said a push to forge a diplomatic resolution to the Iran war is ongoing, with the efforts focused on de-escalation and the reopening of the strait, according to media reports.

The Gulf country, which has served as a regional mediator between the U.S. and Iran, reportedly added that language on a possible deal has been drafted and is being circulated among negotiators. While there is currently no agreement to hold direct talks, a short-term resolution is the focus for Qatar, the reports said.

Earlier in the week, President Donald Trump asserted that revived talks with Iran would soon start, although Iranian foreign ministry spokesperson Esmaeil Baqaei denied that any such dialogue was taking place. Trump responded by calling Iranian leadership "unbelievably duplicitous."

Tehran did confirm that talks with Oman were ongoing over the status of the Strait of Hormuz. But traffic through the vital waterway was scant, while military tensions in the Gulf remained heightened.

Away from the Middle East, the U.S. economic calendar was in focus. On Tuesday, the Bureau of Labor Statistics reported 7.359 million job openings in June versus an estimate of 7.454 million. May openings were revised lower to 7.537 million from 7.594 million. Openings had surged to 7.585 million in April, the highest since May 2024.

While the reading came in cooler than anticipated, the overall report suggested that the U.S. labor market remained strong. Hires in June were unchanged, and so were total separations. Within separations, quits and layoffs and discharges were flat as well.

The data also supports the Fed’s recent switch to focusing more on its inflation mandate as its maximum employment mandate appears to be well in hand. Volatility in oil prices due to the ongoing conflict in the Middle East has upended inflationary dynamics and caused division among Fed policymakers as to the appropriate path of monetary policy.

"[U]ncertainty over the policy path remains elevated as investors weigh persistent inflation risks against signs of moderating economic momentum," analysts at ING said in a note.