(RTTNews) - Extending gains for the third consecutive day, gold prices have edged higher amid increasing expectations of an end to the gulf war as the Iranian regime analyzes a peace proposal offered by the U.S. to end the war and commence negotiations on all issues.
Front Month Comex Gold for June month delivery has climbed by $20.80 (or 0.44%) to $4,715.10 per troy ounce.
Front Month Comex Silver for June month delivery has catapulted by $2.386 (or 3.10%) to $79.415 per troy ounce.
On the economic front, data released by the U.S. Department of Labor today revealed that unemployment benefit claims increased by 10,000 to 200,000 in the last week of April. Continuing jobless claims declined to 1,766,000 for the week ending April 25.
Data from Challenger, Gray, and Christmas revealed that private employers announced 83,387 job cuts in April, the most in three months, compared to 60,620 in March.
Since February 28, when the conflict between the U.S., Israel and Iran broke out into a full-fledged war, the Strait of Hormuz has remained effectively closed, leaving hundreds of oil and energy carrying vessels stranded at sea. The consequential supply disruption concerns continue to impinge on major global economies.
Yesterday, Axios reported that the U.S. has handed Iran a one-page, 14-point Memorandum of Understanding to halt the war immediately, open up the Strait of Hormuz, and to arrive at a framework for discussions over a 30-day period on all of the contentious issues with an intention to end the hostilities altogether. The report was confirmed hours later by Reuters.
Among several important points of disagreement between both nations are Iran's nuclear ambitions and control over the Strait of Hormuz.
Iran is reviewing the tenets of the agreement and is expected to offer a formal response by today though there is no official deadline.
Trump has warned that the U.S. will restart bombing Iran if it fails to reach an agreement with the U.S. Trump has been staunchly opposed to Iran building any nuclear weapon or holding Uranium stockpiles.
The attacks have been stopped since early April when allowed a two-week ceasefire that he later extended indefinitely.
On Monday, Trump announced Project Freedom, an initiative to safely escort the stranded ships belonging to countries not connected to the war out of the Strait of Hormuz. However, in around 48 hours, Trump called off the operation, stating that the bilateral negotiations were progressing well and affirmed that the war would likely end quickly.
Despite tensions in the Middle East after Israel bombed Lebanon's capital Beirut's southern suburbs targeting Hezbollah militants, the chances of an end to the U.S.-Iran war and the possibility of reopening of the Strait of Hormuz eased crude oil supply concerns and oil prices declined.
With neighbors intensifying the pressure on Iran to reopen the strait to recommence export of their oil and energy outputs, experts are waiting to see if the Iranian regime would successfully pacify hardliners and reconcile with the U.S.
The positivity generated due to the prospects of a potential U.S.-Iran peace proposal brought down oil prices and pushed gold and silver prices higher.
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