WASHINGTON (dpa-AFX) - Gold prices have edged lower on Tuesday amid renewed concerns of inflationary pressure following fresh U.S. military strikes on Iran yesterday while the Strait of Hormuz remains closed for oil and energy transit.
Of note, U.S. markets were closed on Monday on account of the Memorial Day holiday.
Front Month Comex Gold for June month delivery has inched lower by $18.90 (or 0.42%) to $4,504.30 per troy ounce.
Front Month Comex Silver for June month delivery has edged higher by $0.388 (or 0.51%) to $76.320 per troy ounce.
The U.S.-Israel versus Iran war entered day number 88 today.
Iran shut the Strait of Hormuz soon after the conflict erupted. Soon after announcing a ceasefire early in April to facilitate negotiations for ending the war, U.S. President Donald Trump also enforced a naval blockade on ships entering or exiting Iranian ports.
Over the weekend, news surfaced about the possibility for a peace deal that involved a 60-day extension of the ceasefire, immediate reopening of the Strait of Hormuz, and a plan for discussions on Iran's nuclear program in this 60-day period.
On Sunday, Trump stated that he had asked the U.S. team not to rush into a deal. While Trump continues to insist that the enriched uranium stockpile must be moved out of Iran, hardliners in the current Iranian regime have been vehemently rejecting his demand.
On Monday, through social media platform Truth Social, Trump stated that he wanted leaders of Arab nations to mandatorily sign the Abraham Accords to make the settlement with Iran historically significant. Trump remarked that he has ordered his representatives to begin working on it.
The accord was brokered during Trump's first term aimed to bridge the gap between Israel and Arab nations.
Yesterday, U.S. Secretary of State Marco Rubio expressed that he was anticipating good news on an agreement but spokesperson for Iran's Foreign Ministry Esmaeil Baghaei clarified that it was incorrect to say a deal was imminent.
An Iranian team including political leaders and high-level officials is in Qatar to discuss the sensitive issues before finalizing an agreement.
Amid this, yesterday, Spokesperson for U.S. Central Command, Navy Captain Tim Hawkins stated that U.S. forces conducted limited 'self-defense' strikes though it exercised restraint during the current ceasefire.
The attacks targeted Iran's boats near Bandar Abbas and missile launch sites of Iran. Iran accused the U.S. of showing a sign of bad faith and unreliability.
Today, Trump stated that the enriched uranium from Iran will be brought to the U.S. and destroyed or in any other place acceptable to Iran. Iran has not responded to this officially.
Meanwhile, through a televised written message to Iranians, Iran's Supreme Leader Mojtaba Khamanei stated that gulf powers will no longer serve as a shield for U.S. bases and Israel will not exist in another 15 years, hinting at a hardline stance against the U.S. and the west.
Today, Rubio stated that a U.S.-Iran deal may take a few more days as it involves a lot of talking back and forth. However, Rubio affirmed that the Strait of Hormuz will reopen one way or other.
Talks continued for the second day today. Experts view this positively as neither side abandoned exploring diplomatic opportunities to end the hostilities.
As market participants watched these developments with cautious optimism, gold prices edged lower due to concerns of elevated inflation.
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