Gold Closes at $3,917.9 on Day of U.S. Strikes in Strait of Hormuz
Key Facts
EL7’s GCUSD gold contracts closed at $3,917.9 on Nov. 3, 2026, down from $3,969.6 the previous day. XAUUSD prices also closed at $3,908.815, compared with a close of $3,946.74 on Nov. 2. These figures are daily closes, recorded on a day when reports covered U.S. strikes on Iranian targets in the Strait of Hormuz. The daily closes do not identify the price available when the news was published or the trading path during the session. The confirmed news, therefore, remains the closing level recorded that day, alongside the geopolitical and economic developments that took place.
A U.S. official told the Associated Press that the United States carried out defensive strikes on Iranian targets in the Strait of Hormuz on Monday, Nov. 2. The report cited Iranian television as saying explosions were heard on Qeshm Island. A U.S. official described the targets as Iranians using surface-to-air missiles against U.S. assets. The agency reported that the strikes appeared limited, rather than a full return to hostilities. The development puts security in the strait at the center of the regional picture, while the report does not establish that the strikes caused oil prices to move.
On the diplomatic front, U.S. Vice President JD Vance said Monday that the president and the United States saw good chances of reaching a negotiated settlement with Iran. The Associated Press quoted officials as saying diplomatic efforts had made progress and that mediators were working on a framework to halt Iran’s attacks in the Strait of Hormuz in exchange for the United States lifting its blockade of Iranian ports. The officials said further talks were scheduled during the week. The statements show that negotiating channels remain active alongside the limited strikes reported by the agency. China also said it planned to send a special envoy to Iran, Oman and Saudi Arabia in early to mid-November, focusing on reducing tensions and promoting regional stability.
World Gold Council data provide broader market context ahead of the November session. The average evening LBMA gold price was $4,262 an ounce in the third quarter of 2026, up 23% year on year and the third-highest quarterly average on record. Global gold demand, including over-the-counter trading, was 1,369 tonnes in the third quarter, down 1% from the corresponding period. But demand since the start of the year reached 3,881 tonnes through the end of the third quarter, nearing the 2025 annual record of 3,884 tonnes. The figures show the strength of cumulative demand despite its year-on-year decline in the third quarter.
Official sector buyers, including central banks, made net purchases of 321 tonnes of gold in the third quarter, up 42% year on year and the highest quarterly total since the fourth quarter of 2024. Their purchases since the start of 2026 totaled about 675 tonnes, up 6% from the same period a year earlier. Looking ahead to the fourth quarter, the World Gold Council said higher interest rates, bond yields and a stronger dollar could weigh on investment demand. It added that fiscal concerns, inflation risks, geopolitical tensions and stress in financial markets could support demand. The assessment brings together factors that could weigh on gold and others that may bolster demand, without specifying a net outcome for price movements.
The U.S. Job Openings and Labor Turnover report for September was scheduled for Nov. 3 at 10:00 a.m. Eastern Time. The Bureau of Labor Statistics scheduled the October employment report for Nov. 6 at 8:30 a.m. Eastern Time, followed by the October Consumer Price Index report on Nov. 10 at the same time. These dates are upcoming points on the U.S. data calendar that investors are monitoring alongside developments in the Strait of Hormuz. On the diplomatic front, China said its special envoy would visit Iran, Oman and Saudi Arabia in early to mid-November. This follows officials’ statement that further talks on a de-escalation framework were scheduled during the week.