(RTTNews) – Extending the losses from yesterday’s session, gold prices have edged down on Thursday as U.S. prepares to hit Iran hard, raising concerns of an expansive war in the Middle East for an extended period. Due to escalation concerns, the U.S. Dollar Index advanced close to a two-month high.
Front Month Comex Gold for August month delivery has declined sharply by $34.80 (or 0.84%) to $4,098.50 per troy ounce.
Front Month Comex Silver for August month delivery has edged lower by $0.472 (or 0.73%) to $64.515 per troy ounce.
The U.S.-Israel versus Iran war entered day number 104 today.
Last week, indications on a peace agreement between the U.S. and Iran surfaced reducing crude oil supply disruption concerns caused by the closure of Strait of Hormuz since February 28.
Days before, U.S. President Donald Trump announced that a U.S.-Iran deal could happen in a day or two following which the Strait of Hormuz will be reopened.
Hours later, Trump stated via his social media platform Truth Social that Iran downed a U.S. Apache Helicopter, patrolling across the Strait of Hormuz and vowed that U.S. will and must respond heavily.
Trump also expressed his frustration over Iran’s delay in reaching a deal with the U.S.
While U.S. military’s Central Command hit key targets in Iran, in retaliation, Iran attacked U.S. bases in Bahrain, Jordan, and Kuwait.
Reasserting U.S. control over the Strait of Hormuz, yesterday Trump stated that under his orders, U.S. military escorted more than 200 commercial ships to pass through the strait, transfering more than 100 million barrels of oil since last month.
Watching the developments over the last two days which have increased concerns of an intense war and an extended closure of Strait of Hormuz, market participants are staying away from risky assets.
Today, Trump messaged that Iran will be hit very hard tonight.
Recalling U.S. takeover of Venezuelan oil trade, Trump added that U.S. forces will be taking Kharg Island and other infrastructure points and take total control of their oil and gas markets.
The Kharg Island handles around 90% of Iran’s exports.
On the economic front, data released by the U.S. Labor Department today revealed that on a month-on-month basis, producer prices for final demand increased 1.10% in May (above forecasts of 0.70%). On an year-on-year basis, the annual producer inflation accelerated for the fourth consecutive time to 6.50% in May.
Core producer prices (excluding food and energy) rose by 0.40% over a month earlier in May, below market forecasts of a 0.50% increase. On an year-on-year basis, the core producer prices rose by 4.90%.
The producer prices increased to 157.66 in May from 156.01 in April.
On the jobs front, the number of people claiming unemployment benefits rose by 4,000 to a three-month high of 229,000 over the first week of June, solidly higher than market expectations of a decrease to 219,000. Continuing jobless claims increased to 1,795,000 for the week ending May 30 from 1,771,000 of the previous week.
Yesterday’s inflation data showed that the core consumers purchasing index slowed to 0.20% month on month.
The U.S. dollar index was last seen trading at 100.29, up by 0.24 (or 0.24%) today.
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