WASHINGTON (dpa-AFX) - Extending yesterday's slump, gold prices have plunged on Tuesday as investors' attention converges on how the U.S.-Iran peace talks would pan out, with the crucial two-week ceasefire deadline ending in a day. The Strait of Hormuz still remains shut, increasing oil supply concerns.
Front Month Comex Gold for June month delivery has plummeted by $108.80 (or 2.25%) to $4,720.00 per troy ounce.
Front Month Comex Silver for June month delivery has nosedived by $3.752 (or 4.67%) to $76.580 per troy ounce.
The two-week ceasefire in the U.S.-Iran war announced by U.S. President Donald Trump earlier in April is set to end tomorrow.
Around 10 days before, attempts to utilize this ceasefire period to negotiate and arrive at a framework for chartering future peace talks to end the conflict between the nations ended without any breakthrough, with Trump calling the meeting 'a failure.'
Trump ordered a blockade on all ships entering or exiting Iranian ports across the Strait of Hormuz, which was enforced quickly by the U.S. navy.
However, through a series of interviews to media outlets, Trump went on to confirm a second round of peace talks, which gave markets the required breather.
On Sunday, Trump announced that U.S. forces have seized an Iranian-flagged vessel that did not heed to 'fair warnings' to halt.
After Iran condemned this capture as 'armed piracy,' Iranian state media reported that the nation was not ready to participate in the next round of peace talks.
Iran's Foreign Minister Abbas Araghchi called the blockade a violation of the ceasefire.
Uncertainty continues with no official announcement made by Iran on its participation.
Through Truth Social posts, Trump accused Iran of violating the ceasefire numerous times but appreciated U.S. forces for wiping out Iran's navy and affirmed that the blockade will not end until Iran agrees to a peace proposal.
Days before, Trump had threatened that Iran's power plants and bridges will be obliterated if they refuse to sign a deal.
Trump also dismissed reports that he was under any pressure to make a deal but asserted that the upcoming deal will guarantee peace, security, and safety for Israel, the Middle East, and the Europe.
Today in an interview with CNBC, Trump claimed the U.S. has the upper hand in the negotiations and declined to extend the ceasefire. He again reaffirmed of a 'great deal' coming up, relatively quickly.
However, Iran counter-warned that it will not negotiate under the shadow of threat and claimed to have 'new cards on the battlefield.'
On the data front, Automatic Data Processing reported that private employers in the U.S. added an average of 54,750 jobs per week over the four weeks ending April 4.
According to U.S. Census Bureau, retail sales in the U.S. rose sharply by 1.70% in March, exceeding expectations of 1.40% and increased 4.00% in March over the same month in the previous year.
The International Maritime Organization reported that around 20,000 seafarers and nearly 2,000 ships have been stranded since the Strait of Hormuz was shut following U.S.-Israeli strikes on Iran on February 28.
The U.S. Dollar value firmed up, and gold prices moved lower as the prospects of peace talks are set to remain cloudy until Iran confirms its involvement.
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