WASHINGTON (dpa-AFX) - Gold prices have advanced on Friday as concerns of a renewed war-threat in the Middle East decreased following reports of Iran passing a new peace proposal through Pakistan to the U.S. to resolve the ongoing crisis.
Front Month Comex Gold for June month delivery has moved higher by $20.90 (or 0.45%) to $4,650.00 per troy ounce.
Front Month Comex Silver for June month delivery has surged by $2.606 (or 3.53%) to $76.375 per troy ounce.
The gulf war between the U.S.-Israeli forces that began on February 28 continues to keep the Strait of Hormuz shut.
Trump rejected previous truce proposals shared by Iran through Pakistan, which emphasized pushing discussions on Iran's nuclear ambitions to a later date.
On Wednesday, Trump reported that the 'naval blockade' on Iran's ports is more effective than 'bombing' and vowed to maintain the blockade on all ships traveling to and from Iranian ports until Iran comes up with a peace deal.
The same day, Trump also posted an image of himself holding a gun on Truth Social and calling Iran to get its act together soon.
Trump also met top-level executives of major oil companies asking them to get ready for a possible long-term supply disruption via the Strait of Hormuz.
Iran refused to reopen the Strait of Hormuz until the U.S. lifted its blockade.
Yesterday, Iran's new Supreme Leader Mojtaba Khamenei affirmed that Iran would not abandon its nuclear programs.
Despite the ongoing ceasefire, tension and confusion remain at an elevated level after another report by Axios reported that U.S. Central Command was preparing for 'short and powerful' wave of strikes.
Reuters reported that the Islamic Revolutionary Guards Corps threatened 'long and painful strikes' on the U.S. if it dares to strike Iran.
With the possibility of a fresh war surfacing and with both the U.S. and Iran doubling down on their mutual warnings, investors were concerned that the increasing rift between the warring nations could impede diplomatic measures.
During a discussion on the need for seeking congressional approval for military action, U.S. House Speaker Michael Johnson and Defense Secretary Pete Hegseth maintained that the U.S. was not at war with Iran.
Trump informed the Congress on March 2 about the U.S. military action against Iran.
Trump's team asserted that in the absence of any direct firing between the U.S. and Iran after the declaration of a two-week ceasefire on April 7 (which was extended indefinitely on April 22), the 60-day timeline to seek Congress approval (under the U.S. War Powers Act) becomes redundant.
On the economic front, data released by S&P Global revealed that the manufacturing Purchasing Managers' Index was revised upward to 54.50 in April, from a preliminary estimate of 54.00 and above March's 52.30.
The Institute for Supply Management's PMI remained unchanged at 52.70 in April, matching its highest level since August 2022.
On April 29, the rate-setting Federal Open Market Committee of the U.S. Federal Reserve agreed to hold the benchmark funds rate in the current range of 3.50% to 3.75%, citing inflationary concerns due to the ongoing Middle East war.
According to the World Gold Council's report, central banks across the world increased their gold purchases to 244 tons (or +3.00%) during Q1 2026, continuing to support the market amid global uncertainty.
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