This increase comes amid market optimism regarding a potential agreement to reopen the Strait of Hormuz, a critical trade route for oil. The weakening U.S. dollar has also contributed to the upward trend in gold prices, making the metal more attractive to investors. Reduced expectations of additional Federal Reserve rate hikes suggest a more favorable environment for gold investments, consistent with a potential increase in demand. What to WatchMarket participants will be monitoring developments related to the Strait of Hormuz deal negotiations closely. Any confirmation of an agreement could further solidify current trends supportive of increasing gold prices.