WASHINGTON (dpa-AFX) - Gold prices have soared on Tuesday after U.S. President Donald Trump admitted that the U.S. and Iran could meet again in Pakistan for peace talks in the next few days.
Front Month Comex Gold for June month delivery has surged by $82.80 (or 1.74%) to $4,850.20 per troy ounce.
Front Month Comex Silver for June month delivery has catapulted by $3.703 (or 4.88%) to $79.645 per troy ounce.
In a significant move in the U.S.-Israel versus Iran war, Trump announced a two-week ceasefire last week and urged Iran to open up the Strait of Hormuz completely. However, Iran curtailed the movement to allow only around 15 ships per day.
After Iran took control of the strait since the war broke out, crude prices went through the roof. Oil prices are trading up more than 60% so far this year.
Last Friday, a high-level delegation headed by U.S. President JD Vance arrived in Pakistan to discuss with Iranian counterparts on a framework proposal to end the hostilities between both nations.
On Saturday, the talks began and went on for nearly 20 hours after which the teams returned.
On Sunday, Trump called the initiative a failure. He stated that Iran refused to go back on its nuclear weapons programs.
On Monday, under Trump's orders, U.S. forces enforced a blockade to ships moving to and from the Iranian ports across the Strait of Hormuz.
Trump threatened that the U.S. navy would brutally and quickly eliminate any Iranian military ship approaching the 'blockade region.'
Iran counter-warned of a sterner response and threatened that no gulf port will be spared if the U.S. blockade continues.
Concerns of renewed inflationary pressures and a consequent high-interest rate regime drove up the U.S. dollar, making gold-buying costlier for overseas buyers.
On the second day of the 'U.S.-imposed blockade,' Trump messaged via Truth Social that 34 ships went through the Strait of Hormuz.
However, today Reuters reported that Pakistan has proposed a second round of talks between the two nations for which both the negotiating teams could return to Pakistan.
Trump earlier acknowledged that they have been 'called by the other side' for working out a deal.
Arab News reported citing anonymous Iranian embassy officials from Islamabad, Pakistan, that an exchange of messages between the U.S. and Iran through Pakistan took place and that the next round can come anytime anywhere.
In a telephone interview with New York Post, Trump stated that a second round of direct negotiations to end the seven-week gulf war could be happening over the next two days, in Pakistan.
Oil prices nosedived by $6.71 (or 6.77%) to $92.37 as the likelihood of a resumption of peace process grew stronger.
Of significant note, envoys from Israel and Lebanon met in Washington today for U.S.-mediated direct peace talks, hosted by U.S. Secretary of State Marco Rubio.
Israeli envoy Yechiel Leiter and Lebanon's Nada Hamadeh Moawad headed their respective teams.
In the U.S., the National Federation of Independent Business' Small Business Optimism Index fell to 95.80 in March, below forecasts of 98.60.
Numbers released by Automatic Data Processing revealed that U.S. private employers added an average of 39,250 jobs per week over the four weeks ending March 28.
According to the U.S. Bureau of Labor Statistics, producer prices increased by 0.50% month-over-month in March and by 4.00% year on year.
Core producer prices in the United States, (excluding food and energy), rose by 0.10% over a month earlier in March 2026 and by 3.80% year on year.
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