Summary

(RTTNews) - Extending gains from yesterday's session, gold prices have soared on Wednesday after U.S. President Donald Trump announced that great progress was being made in the ongoing U.S.-Iran negotiations to end mutual hostilities. Front Month Comex Gold for June month delivery has surged by $125.20 (or 2.74%) to $4,693.70 per troy ounce. Front Month Comex Silver for June month delivery has skyrocketed by $3.729 (or 5.09%) to $77.055 per troy ounce. The U.S.-Israel versus Iran conflict is now in the third month. Since the war broke out on February 28, Iran has effectively closed the Strait of Hormuz. After announcing a ceasefire on attacks against Iran, first for two weeks and then extending it indefinitely, Trump ordered a naval blockade on ships traveling to and from Iranian ports across the Strait of Hormuz. The twin blockade left several ships stranded at sea with nearly 23,000 mariners from around 87 countries trapped inside. This led to a surge in oil prices, triggering inflationary concerns throughout the world. On Monday, Trump announced Project Freedom, an initiative whereby the U.S. military will guide the stranded ships safely out of the strait as a humanitarian gesture. On the second day of the operation yesterday, reportedly only three ships passed under the U.S. Navy's guidance. While experts analyzed the progress of the project, Trump suddenly announced via Truth Social that he has paused Project Freedom for a short period of time at the request of Pakistan and other countries. Trump also observed that tremendous progress has been made in the talks with Iran to reach a complete and final agreement. However, Trump asserted that the U.S. naval blockade on Iran will remain in full force. In a White House briefing, U.S. Secretary of State Marco Rubio stated that the campaign on Iran (termed Operation Fury) has ended. Axios reported that the U.S. is close to reaching an agreement with Iran on a one-page Memorandum of Understanding, comprising 14 points, to end the conflict. Both nations would arrive at a framework to chart a course for detailed negotiations on nuclear issues over a 30-day period. The report added that the U.S. anticipates a response from Iran in the next 48 hours. Citing Pakistani sources, Reuters also confirmed the Axios report on a possible deal between the U.S. and Iran. CNBC quoted a spokesperson for Iran's Foreign Ministry as stating that Iran is evaluating the proposal. However, Trump has warned that in case of a disagreement, the U.S. may restart bombing Iran. The MoU is said to limit Iran's nuclear programs and lift U.S. sanctions on Iran. Crude oil prices nosedived, and with inflationary concerns off the table at least for the near-term, gold prices have moved sharply higher. WTI crude oil for June month was last seen trading at $95.71, down by $6.56 (or 6.41%). The U.S. dollar index was last seen trading at 98.01, down by 0.30 (or 0.31%) today. On the economic front, the Mortgage Bankers Association of America revealed that the Purchase Index in the U.S. decreased to 171.10 on May 1 from 177.70 of the previous week. Data from Automatic Data Processing revealed that private businesses in the U.S. added a net 109,000 jobs in April, above market forecasts of 99,000. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.