Gold Rebound as Hormuz Reopening Hopes Weigh on Dollar, Oil

Bullion found support on Tuesday as encouraging signals about the Strait of Hormuz dented the US dollar and pulled oil prices lower. XAU/USD traded near $4,087, recovering from an earlier dip.

Reports suggesting a potential reopening of the critical waterway eased fears of crude supply disruptions, pushing oil prices down. That, in turn, reduced the greenback’s safe-haven appeal, giving gold room to rebound.

While the headline-driven moves lifted spot gold, traders remained cautious as the situation remains fluid. The metal’s recovery reflected its dual role as both a hedge against dollar weakness and a beneficiary of falling yields.