{"id":66035,"date":"2026-08-05T20:08:14","date_gmt":"2026-08-06T00:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-surges-as-hormuz-reopening-hopes-cool-fed-rate-hike-bets\/66035\/"},"modified":"2026-08-05T20:08:14","modified_gmt":"2026-08-06T00:08:14","slug":"gold-surges-as-hormuz-reopening-hopes-cool-fed-rate-hike-bets","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-surges-as-hormuz-reopening-hopes-cool-fed-rate-hike-bets\/66035\/","title":{"rendered":"Gold Surges as Hormuz Reopening Hopes Cool Fed Rate Hike Bets"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold prices<\/a> surged to $4,262.66 an ounce<\/strong>, marking a significant 4.1% jump as optimism over the <strong>reopening of the Strait of Hormuz<\/strong> lowered inflation expectations.<\/li>\n<li><strong>Markets have pivoted to pricing in only a single U.S. rate increase<\/strong> by year-end, down from two last week, as easing energy pressures reduce the urgency for Federal Reserve tightening.<\/li>\n<li><strong>Japan&#39;s capital flows showed a sharp reversal<\/strong> for the week ending July 31, with domestic investors buying <strong>\u00a5477.9B in foreign bonds<\/strong> while foreign investors offloaded <strong>\u00a5392.5B in Japanese stocks<\/strong>.<\/li>\n<li><strong>China Banking Corp (<a href=\"\/stock\/CHIBY\">CHIBY<\/a>) reported an 11% increase in H1 2026 profits<\/strong> to 14.5 billion pesos, supported by a 14% rise in net interest income.<\/li>\n<li><strong>The Ebola outbreak in the Democratic Republic of Congo (DRC)<\/strong> has escalated to <strong>3,973 confirmed cases and 1,801 deaths<\/strong>, intensifying concerns over the fastest-growing outbreak on record.<\/li>\n<\/ul>\n<h2>Precious Metals and Federal Reserve Outlook<\/h2>\n<p><strong>Spot gold<\/strong> held its ground at approximately <strong>$4,260 an ounce<\/strong> following its largest single-session gain since February. The rally was fueled by reports of progress in negotiations to reopen the <strong>Strait of Hormuz<\/strong>, a critical maritime artery for global energy supplies. <em>Investors are increasingly betting that a resolution to the regional conflict will dampen energy-driven inflation<\/em>, thereby providing the Federal Reserve with more room to pause its aggressive hiking cycle.<\/p>\n<p>Despite the market&#39;s dovish shift, <strong>Fed Governor Lisa Cook<\/strong> reiterated her stance that she remains prepared to raise interest rates if inflation does not continue to slow toward the 2% target. <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a><\/strong> also saw modest gains, rising 0.1% to <strong>$62.14<\/strong>, as the broader precious metals sector benefited from a weakening U.S. dollar and lower Treasury yields.<\/p>\n<h2>Japanese Capital Flows and Regional Tensions<\/h2>\n<p>Fresh data from Japan for the week ending July 31 reveals a notable shift in international investment patterns. <strong>Japanese investors became net buyers of foreign bonds<\/strong> (\u00a5477.9B) after a period of heavy selling, while simultaneously offloading <strong>\u00a5276.4B in foreign stocks<\/strong>. Conversely, <strong>foreign investors returned to Japanese bonds<\/strong> with \u00a5558.9B in net purchases but pulled <strong>\u00a5392.5B out of Japanese equities<\/strong>, suggesting a cautious stance toward the country&#39;s stock market amid global volatility.<\/p>\n<p>Geopolitical tensions in the Middle East remain a primary concern for global markets. On Wednesday, <strong>Israeli airstrikes<\/strong> reportedly targeted the <strong>Burj al-Shemali<\/strong> area in Tyre, southern Lebanon. <em>The continued military activity underscores the fragility of the regional security situation<\/em>, even as diplomatic efforts regarding the Strait of Hormuz show signs of progress.<\/p>\n<h2>Corporate Earnings and Global Health<\/h2>\n<p><strong>China Banking Corp (<a href=\"\/stock\/CHIBY\">CHIBY<\/a>)<\/strong> delivered a robust financial performance for the first half of 2026. The bank&#39;s <strong>net interest margin expanded to 4.67%<\/strong>, driving net interest income up to <strong>39.7 billion pesos<\/strong>. With a <strong>Common Equity Tier 1 ratio of 14.7%<\/strong> and a stable non-performing loan (NPL) ratio of 1.5%, the institution remains well-capitalized despite the challenging macroeconomic backdrop.<\/p>\n<p>In the health sector, the <strong>Democratic Republic of Congo<\/strong> is battling a severe escalation of the <strong>Ebola virus<\/strong>. Confirmed cases have now reached <strong>3,973<\/strong>, with the death toll rising to <strong>1,801<\/strong>. <em>Health officials warn that the current strain, Bundibugyo, is particularly difficult to contain<\/em> due to the lack of licensed vaccines and the ongoing insecurity in the affected eastern provinces.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Spot gold prices surged to $4,262.66 an ounce, marking a significant 4.1% jump as optimism over the reopening 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