Gold prices climbed to their highest point since late June on Wednesday, driven by weaker-than-expected employment data and optimism surrounding the reopening of the Strait of Hormuz.

Spot gold briefly touched $4,295 per ounce before pulling back, trading near $4,268 on Thursday. Gold futures were last quoted at $4,329 per ounce. The precious metal is now in its fourth consecutive day of gains, hovering near seven-week highs.

Some of the headwinds that had been weighing on gold prices since the onset of related conflicts have slightly eased. Another catalyst for the rally is a reduction in Middle East tensions, with progress being made toward reopening the Strait of Hormuz. On Wednesday, Iran indicated that an agreement with Oman to reopen this key waterway was close, which is positive for risk assets.

Despite the recent rebound, gold remains more than 20% below its January peak of $5,589 per ounce. After a strong rally through 2025 and beyond that saw it hit record highs, the metal has underperformed over the past six months, trading well below its highs from earlier this year.