(RTTNews) - Gold prices fell toward $4,700 an ounce on Monday as the dollar strengthened, global bond yields surged and oil prices jumped back above $100 a barrel, following the breakdown of U.S.-Iran peace talks over the weekend in Islamabad.
Spot gold fell 0.7 percent to $4,717 an ounce while U.S. gold futures for June delivery were down nearly 1 percent at $4,743.12.
After peace talks failed amid unresolved disputes over Iran's nuclear program, U.S. President Donald Trump ordered blocking all ships trying to enter or leave the Strait of Hormuz, heightening fears of a prolonged conflict and disruptions to key energy supplies from the Persian Gulf region.
Trump announced that the United States Navy will block 'all maritime traffic entering and exiting Iranian ports' starting on Monday. "It's going to be all or none and that's the way it is," the president said.
Iran's navy chief asserted that the country is prepared to counter any military action and will not be intimidated by what it called "imaginary plans."
While both countries indicated that negotiations may continue, media reports suggest that sharp disagreements remain over nuclear commitments, Strait of Hormuz control, financial reparations, and ongoing Israeli attacks in Lebanon.
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