WASHINGTON (dpa-AFX) - Extending the losses from yesterday's session, gold prices have plunged on Friday as the Strait of Hormuz blockade is more likely to continue since the U.S.-China summit ended with no announcement on a possible Chinese intervention to end the gulf war.
Front Month Comex Gold for June month delivery has plummeted by $125.30 (or 2.67%) to $4,560.00 per troy ounce.
Front Month Comex Silver for June month delivery has nosedived by $8.341 (or 9.81%) to $76.695 per troy ounce.
U.S. President Donald Trump departed from Beijing after a crucial two-day summit with Chinese President Xi Jinping. The trip was aimed at expanding the trade and technology ties between both the nations.
Trump remarked that 'a lot of good' came from his visit and 'a lot of different problems have settled' and added that some 'fantastic trade deals' have been made. However, details on any specific agreement have yet to be announced by both nations.
Trump stressed that both the leaders discussed Iran and said both do not want Iran to have a nuclear weapon. He added that they agreed that the Strait of Hormuz must be kept open to all ships.
In an interview with Fox News, Trump observed that his patience was running out and urged Iran to make a deal soon.
Trump affirmed that China consented to support U.S.-Iran negotiations and had agreed to refrain from supplying military equipment to Iran. Of note, Trump stated that China wanted to buy oil from the U.S.
Yesterday in an interview with CNBC, U.S. Treasury Secretary Scott Bessent said China will be working 'behind the scenes' to help reopen the Strait of Hormuz as it has larger stakes than the U.S.
However, with no agreement in sight, and no announcement made about possible Chinese intervention to bring an end to hostilities between the U.S. and Iran, crude oil prices soared.
With inflationary concerns returning, the U.S. Dollar Index moved higher and gold prices tumbled today.
Higher fuel prices seep into inflation, pushing businesses to pass on the additional costs to consumers, which compels central banks to keep interest rates elevated, and consequently, demand for the yellow metal diminishes.
Following a meeting of Foreign Ministers of BRICS nations in New Delhi, India, Iran's Foreign Minister Abbas Araghchi stated that Iran has every reason not to trust the U.S. and added that though the ceasefire is 'shaky,' Iranians want to give diplomacy a chance.
On the economic front, data released by the U.S. Federal Reserve showed that the industrial production increased 0.7% in April after decreasing 0.3% in March. In April, manufacturing output rose 0.6%.
The U.S. dollar index was last seen trading at 99.19, up by 0.24 points (or 0.24%) today.
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