Everbright Futures: Hormuz joint management signals boost sentiment, gold prices recover some losses

Overnight, the precious metals market experienced a “V-shaped” recovery. Boosted by news that Iran and Oman are beginning to draft a joint management agreement for the Strait of Hormuz, concerns over extreme disruptions in energy transportation eased, and gold prices on the foreign markets rebounded from intraday lows. By the close, COMEX gold’s decline narrowed to 1.7%, and COMEX silver’s decline narrowed to 2.7%.
The development of news headlines dominated the rhythm of gold price fluctuations yesterday. Trump did not provide a withdrawal timetable during his nationwide televised speech but instead emphasized heavy strikes on Iran in the next two to three weeks. The market generally interpreted this statement as “pre-war reassurance” rather than “post-war summary,” reigniting geopolitical tensions, and international oil prices surged accordingly. The spike in oil prices intensified the risk of runaway inflation, further suppressing expectations for a Federal Reserve rate cut, causing precious metals to fall rapidly. It was only during the night trading session that Iran released positive signals of joint management with Oman for the Strait of Hormuz and ensuring safe navigation, which helped ease market sentiment. Crude oil retraced some of its gains, and gold and silver rebounded accordingly. (Everbright Futures)