Summary

(RTTNews) - Extending gains for the fourth consecutive session, gold prices have edged higher on Friday as investors wait to see Iran's response to the U.S. proposal to halt the war and reopen the Strait of Hormuz. Front Month Comex Gold for June month delivery has climbed by $18.10 (or 0.38%) to $4,729.00 per troy ounce. Front Month Comex Silver for June month delivery has edged higher by $0.501 (or 0.63%) to $80.400 per troy ounce. The U.S.-Israel versus Iran war entered day number 70 today. U.S. President Donald Trump announced a two-week ceasefire early in April and extended it later for an indefinite period. First, Iran closed the Strait of Hormuz and later the U.S. enforced a naval blockade on all ships entering or exiting Iranian ports. The double-blockade led to a steep increase in crude oil prices due to supply-disruption concerns and major economies are still battling the consequent inflation. After providing Iran a one-page Memorandum of Understanding with 14 key points seeking Iran's agreement, the U.S. is awaiting Iran's response. If Iran agrees, it would lead to the reopening of the strait immediately and halt the war, and in a 30-day timeframe, a framework for discussions will be chartered to discuss all contentious issues. Reportedly, as per the document, the U.S. expects Iran to refrain from developing any nuclear weapons and halt all uranium enrichment for the next 12 years, and in return, the U.S. would lift its sanctions on Iran, release frozen Iranian assets, and withdraw its naval blockade on Iranian ports. Iran is yet to formally respond to the plan. Trump had stated that a deal is within reach but warned that if Iran refuses to reach an agreement, the U.S. will recommence bombing Iran. Meanwhile, U.S. Central Command announced intercepting Iran's attacks on three navy ships yesterday and counterattacked the Iran's military in self-defense. Trump assured that the ceasefire holds despite these events. In a message via Truth Social, Trump reiterated that the U.S. will knock Iran more violently if they do not get the deal signed "fast". According to a CNN report yesterday, in an attempt to formalize its control over the Strait of Hormuz, Iran's Islamic Revolutionary Guard Corps installed the Persian Gulf Strait Authority, which demanded all merchant fleet passing through the strait to submit a 40-question declaration (termed Vessel Information Declaration) as a protocol, failing which they may face severe attacks from Iranian Navy. Iran's move to exert full dominance over the strait has renewed war tensions. It is also uncertain whether Iran would charge a toll for allowing ships to transit the strait. Earlier on Wednesday, Iran's Supreme Leader Mojtaba Khamenei via Telegram called for a new regional order under a strong Iran with no place for foreigners. On the economic front in the U.S., the data released by the Bureau of Labor Statistics today revealed that the US economy added 115,000 jobs in April following an upwardly revised increase of 185,000 jobs in March, way above market forecasts of 62,000 jobs, with major job gains occurring in the health care (37,000), transportation and warehousing (30,000), and retail trade (22,000) sectors. The unemployment rate stood at 4.30% in April, in line with market expectations. However, the number of unemployed rose by 134,000 to 7,370,000 while total employment fell by 226,000 to 162,620,000. Analysts predict that a peaceful agreement could restart smooth flow of oil traffic in the Persian Gulf and bring down crude oil prices and thereby gold prices may go up when inflationary pressures start diminishing. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.