WASHINGTON (dpa-AFX) - Extending losses from yesterday, gold prices have plunged on Wednesday after a fresh skirmish broke out in the gulf between the U.S. and Iran, diminishing expectations of an early reopening of the Strait of Hormuz and a quicker end to the Middle East war.
Front Month Comex Gold for August month delivery has plunged by $148.00 (or 3.45%) to $4,138.40 per troy ounce.
Front Month Comex Silver for August month delivery has changed a little on the upside by $0.046 (or 0.07%) to $65.540 per troy ounce.
The U.S.-Israel war on Iran entered day number 103 today.
Yesterday, U.S. President Donald Trump reassured that a U.S.-Iran deal could happen in a couple of days and affirmed that the Strait of Hormuz will reopen after that in a day or two.
Trump also stressed that the U.S.-imposed naval blockade on ships entering or exiting Iranian ports has weakened Iran economically, forcing Iran to settle for a deal.
As prospects of reopening of the Strait of Hormuz improved, crude oil prices tumbled yesterday.
Hours later, through his social media platform Truth Social, Trump messaged that Iranians have shot an U.S. AH-64 Apache helicopter patrolling across the Strait of Hormuz and stated that the U.S. will and must give back a fitting response.
Today, referring to Iran, Trump messaged via Truth Social that the 'Bully of the Middle East is dead.'
Trump expressed his disappointment for their slow negotiations and asserted that Iran will pay the price for the delay.
U.S. Central Command launched self-defense strikes against Iran today as a proportional response to Iranian downing of U.S. helicopter.
The U.S. launched airstrikes in southern Iran targeting air defense systems, radar sites, and command infrastructures.
Iran claimed it launched missile-and-drone attacks on U.S. Navy's Fifth Fleet headquarters in Bahrain, sites near Al Azraq airbase in Jordan, and U.S. bases in Kuwait.
Iran's Foreign Minister Seyed Abbas Araghchi warned that Iran would leave no attack or threat unanswered and ordered U.S. forces to leave the region if it wished to be safe.
As concerns of re-escalation increased, doubts rose about the possibility of a U.S.-Iran deal (as Trump reassured).
With the chances of reopening of the Strait of Hormuz becoming dim, oil prices moved higher and gold prices tumbled.
On the economic front in the U.S. today, the Labor Department's data revealed that the month-on-month core consumer prices (excluding food and energy) rose by 0.20% from the previous month in May 2026, slightly below market expectations of a 0.30% increase.
Year-on-year, it climbed to 2.90% in May, matching market expectations.
The Consumer Purchase Index rose 0.50% month-over-month in May, in line with forecasts. Year-over-year, it rose to 4.20%.
After rising 10.90% in March and 3.80% in April, energy prices increased 3.90% in May.
The Mortgage Bankers Association of America revealed that the Purchase Index increased to 176.90 on June 5 from 164.80 of the previous week.
The U.S. dollar index was last seen trading at 99.93, down by 0.08 (or 0.08%) today.
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