WASHINGTON (dpa-AFX) - Gold prices have slumped on Monday following renewed Middle East tensions after Iran suspends indirect talks with the U.S. despite U.S. President Donald Trump's assurance that Iran is in need of a deal.
Front Month Comex Gold for August month delivery has tumbled by $86.8 (or 1.89%) to $4,506.20 per troy ounce.
Front Month Comex Silver for August month delivery has slumped by $1.408 (or 1.85%) to $74.765 per troy ounce.
The U.S.-Iran war which began on February 28 entered day number 94 today. A ceasefire was announced on April 8 to facilitate negotiations.
Last week, there was a short exchange of attacks between the U.S. and Iran. However, the discussions to arrive at a deal to end the war and develop a framework for negotiating core contentious issues did not stop.
On Thursday, U.S. officials reported both the nations have arrived at a proposal which awaited Trump's approval.
The latest version of the proposal, according to an Axios report, included a 60-day extension of the current ceasefire to allow a time period for negotiations on Iran's nuclear program and the reopening of the Strait of Hormuz as early as possible.
Reportedly, as the deal progresses, sanctions-relief to Iranian oil exports and access to frozen assets of Iran in foreign nations would follow.
On Friday, Trump announced that he would make a final call after a discussion with high-level officials and ministers in the White House Situation Room.
Over the weekend, U.S. Defense Secretary Pete Hegseth stated that if the deal does not satisfy Trump, strikes on Iran could resume.
Today, citing sources with knowledge on the ongoing developments, CBS News reported that Trump had made some significant changes to the U.S.-Iran Memorandum of Understanding.
The changes Trump has made are linked to the Strait of Hormuz and over the removal of highly enriched uranium that Iran currently has in its possession.
Yesterday, Iran's chief negotiator Mohammad Bagher Ghalibaf stated that Iran would not agree to any deal unless Iran's rights were fully secured.
Today, U.S. Central Command stated that U.S. forces based in Kuwait had intercepted two ballistic Iranian missiles targeting U.S. forces overnight though no casualties were reported.
Trump messaged via Truth Social that Iran wants to make a deal that will be a good one for the U.S.
Earlier, through another message, Trump reaffirmed that the deal he is pushing would not allow Iran to have a nuclear weapon.
Iran's Tasnim news agency stated that Iran has paused the exchange of messages with the U.S. in protest against Israel's expansion of attacks in Lebanon. Reportedly, Iran's Islamic Revolutionary Guards Corps is opening other fronts in the war, hinting at a military offensive on Bab el-Mandeb strait.
On the contrary, Axios quoted Lebanon parliament's speaker Nabih Berri as stating that Hezbollah is ready for a full and immediate ceasefire.
Investors are frustrated by the delay in an actual deal though repeatedly reports indicated both countries were close to signing one.
The continuous postponing of a deal as well as the sporadic exchange of attacks in the gulf have diminished the expectations of reopening of the Strait of Hormuz anytime soon.
While oil markets moved upside due to renewed supply concerns, gold prices slumped today.
Experts are awaiting a spate of U.S. employment data to be released this week to gauge the trajectory of markets.
The U.S. dollar index was last seen trading at 99.20, up by 0.30 points (or 0.30%) today.
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