Gold Prices Surge 7.7% Amid Hopes for Hormuz Diplomacy

Gold prices surged 7.7% in a single week, the strongest weekly performance since March 2020, pushing the value back above USD 4,400 per troy ounce. This recovery follows a sharp decline to USD 4,000 triggered by market tensions from a war between the United States and Iran in the Persian Gulf and the subsequent closure of the Strait of Hormuz.

Victor Dima, Treasury Manager at Tavex Romania, attributes the current rally to a combination of increased investment demand through exchange-traded funds, particularly in Asia, and a shift in the factors that previously pressured the metal. Market sentiment has been further bolstered by hopes for a diplomatic agreement to reopen shipping through the Strait of Hormuz.

Central banks have also accelerated physical gold acquisitions, with net purchases reaching 288.9 tonnes in the second quarter of 2026, a steep increase from the 57 tonnes recorded in the first quarter. Analysts now view the USD 4,500 level as the critical technical threshold to determine if this move represents a short-term recovery or a lasting trend reversal.