Gold climbed toward $4,300 on Thursday, its biggest day since February and a seven-week high.
It's up a fourth straight session, nearly 6% on the week.
An Iran-Oman agreement on a shipping corridor through the Strait of Hormuz eased Middle East supply fears and pulled oil down more than 9% this week.
Markets now price just one Fed rate hike this year, down from two last week.
Gold is still down about a fifth since the US-Iran war began in February, and well short of its record near $5,608 set in January.