SPDR Gold Shares is trading 3.6% up today as a landmark U.S.-Iran peace agreement and the reopening of the Strait of Hormuz triggered a major repricing in inflation and interest-rate expectations.
- A 4%+ drop in oil prices is pushing Treasury yields and the U.S. dollar lower, increasing the appeal of gold as a strategic hedge.
- Gold is seeing increased demand as a portfolio diversifier despite a broader risk-on market rally following the de-escalation of geopolitical risks.