WASHINGTON (dpa-AFX) - Partly offsetting the losses from the three previous sessions, gold prices have surged on Monday after media reports hinted at a possible pause to the planned U.S. attacks on Iran as negotiatory measures gather steam, raising expectations of reopening of the Strait of Hormuz in a couple of days.
Front Month Comex Gold for December delivery has jumped by $73.70 (or 1.89%) to $3,972.60 per troy ounce.
Front Month Comex Silver for December delivery has also soared by $1.659 (or 3.37%) to $50.935 per troy ounce.
Reports since last week indicated that U.S. forces were preparing to begin a large-scale attack on Iran anytime after the midterm elections in the U.S. are over. Notably, the elections are scheduled to be held tomorrow.
Concerns of a deeper escalation led to supply disruption concerns and crude oil prices moved on the higher side.
Aiming to first halt any further attacks in the Middle East and then to push both nations to arrive at an understanding to construct a framework for negotiations and discuss all core issues later, Qatar has been leading a team of negotiators from Iranian neighbors, since the war began in late February.
While holding talks with Iran, Qatar has been in regular contact with the U.S. With support from Saudi Arabia, Turkey, and Egypt, Qatar has also been exchanging messages between the U.S. and Iran.
Earlier on Friday, Qatari officials were in Tehran for discussion with Iranian counterparts. On Saturday, the talks moved to Doha.
Reuters reported that negotiators from Iran who were in Doha, Qatar for a third consecutive day of talks with Qatari mediators left yesterday.
Citing informed sources, the report added that a fresh draft is now under circulation among stakeholders and that there is a potential for a follow-up meeting in the coming days.
On Saturday, U.S. Secretary of State Marco Rubio stated that U.S. President Donald Trump prefers to resolve the conflict through diplomatic measures.
Axios reported that Trump had a conversation on Iran with Israel's Prime Minister Benjamin Netanyahu on Saturday where he had observed that he favors letting negotiations play out before recommencing any attacks.
Al Jazeera reported quoting Iran's Foreign Minister Abbas Araghchi that a proposal could materialize soon with possible reopening of the Strait of Hormuz to happen within two days after an agreement between the U.S. and Iran is reached.
While addressing Iranian media, Araghchi stated that discussions on a two-day proposal were going on but with no final conclusion.
Iran's Foreign Ministry Spokesperson Esmaeil Baghaei stated that talks with the U.S. could resume within a short period of time if its demands are met.
Over the past couple of weeks, both U.S. and Iranian leaders were engaged in a heated exchange of verbal rhetoric.
While reports stated that Trump was leaning towards a military campaign against Iran, Iran's Foreign Minister Abbas Araghchi stated that Iran can defend itself from any attack.
At the same time, both leaders did not rule out a chance for negotiations to resolve their mutual hostilities.
Yesterday, addressing a campaign rally in Iowa, Trump stated that he prefers to be nice with Iran but if required, the U.S. may give Iran the hammer.
Today, with concerns of re-escalation subsiding, supply-related concerns and oil prices as well as worries about U.S. interest rates staying higher for a longer period declined. Consequently, gold prices moved up.
WTI crude oil for December delivery was last seen trading, down by $8.44 (or 8.11%), at $95.68 per barrel.
Today, the U.S. dollar index was last seen trading at 101.69, down by 0.18 (or 0.18%) today.
On the economic front, U.S. manufacturing activity showed an expansion in October even as the Purchasing Managers' Index by S&P Global was revised down to 54.90 from an initial estimate of 56.00, compared to 55.90 in September but remained above the 50.00 threshold for the fifteenth consecutive month.
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