Gold prices steadied on Thursday after falling to their lowest level since early August in the previous session, as renewed tensions around the Strait of Hormuz kept inflation risks elevated and reinforced expectations that the Federal Reserve could raise interest rates again this year. 

By 09:32 ET (13:32 GMT), spot gold had advanced by 0.5% to $4,129.25 an ounce, while gold futures had gained 0.3% to $4,153.25 an ounce.

Iran has stepped up attacks on tankers crossing the Strait of Hormuz, adding to concerns over the security of a key global energy route. The White House is also considering possible military strikes against Iranian targets ahead of the U.S. midterm elections in November, according to media reports.

While oil flows from the Middle East briefly recovered to pre-conflict levels last month, the risks around Hormuz and the nearby Bab el-Mandeb Strait have pushed shipping costs to record highs.

HOUSTON, Oct 8 (Reuters) - Oil prices jumped more than 5% on Thursday, then pared gains after President Donald Trump said the US will not launch an attack on Iran before midterm congressional elections in November. 

Brent crude futures were up $3.48, or 3.5%, at $103.73 a barrel by 12:41 p.m. ET (1641 GMT). US West Texas Intermediate (WTI) crude gained $2.69, or 3.1%, to $91. At their session highs, both contracts were up more than $5 a barrel, with Brent at its highest since September 29 on worries about potential imminent US strikes on Iran and a supply loss in the US Gulf of Mexico from Hurricane Isaias.

Then, Trump said Washington was having productive discussions with Iran. The Tasnim news agency reported that Foreign Minister Abbas Araqchi said Tehran is reviewing the US response to its proposal under which the Strait of Hormuz could be reopened within seven days, and could reply within days.

The U.S. dollar strengthened on Wednesday to a nearly 18-month high, helped by Federal Reserve minutes that hinted at more interest rate hikes and a slide in the euro and sterling. The latter currencies came under pressure amid a resurgence in a global bond rout. 

The U.S. dollar index, which tracks the greenback against a basket of six major peers, rose 0.4% to 102.24. The gauge was hovering at its highest level since April 9, 2025.

Bitcoin hovered above $86,000 on Monday after briefly climbing near $87,000, as investors weighed weaker-than-expected U.S. jobs data against still-elevated Treasury yields and persistent inflation concerns.

Bitcoin was last up around 1.1% at $86,246.4 by 10:05 ET (14:05 GMT), after touching $86,995.4 earlier in the session.

The cryptocurrency has struggled to sustain moves above $87,000 after also briefly breaking that level following Friday’s U.S. employment report.