(RTTNews) – Gold prices have edged higher on Wednesday, extending three sessions of gains, as investors assess the prospects of reopening of the Strait of Hormuz while intermediaries stepped up their efforts for U.S.-Iran negotiations. In addition, the latest inflation figures have lowered concerns of a near-term interest rate hike in the U.S.
Front Month Comex Gold for September month delivery has inched higher by $22.90 (or 0.52%) to $4,415.50 per troy ounce.
Front Month Comex Silver for September month delivery has moved sharply up by $0.600 (or 0.92%) to $65.535 per troy ounce.
The stalemate over the reopening of the Strait of Hormuz continues with Iran adopting a tough stance triggering the U.S. to take an unyielding position.
Last week, U.S. President Donald Trump expressed optimism that Iran would soon strike a deal with the U.S.
Echoing Trump’s views, U.S. Vice President JD Vance confidently stated that negotiations with Iran would soon yield favorable results for the Americans.
Iran confirmed ongoing negotiations with Oman regarding the management of the Strait of Hormuz but denied any direct talks with the U.S.
Then, announcing that a deal with Oman was nearing finalization, Iran suddenly laid out a list of demands to the U.S. and asserted that the reopening of the Strait of Hormuz is subject to the U.S. fulfilling Iran’s preconditions.
In particular, Iran wanted monetary compensation for all the war-related damages due to the war with the U.S.
Angered by this, through Truth Social, Trump placed a counter-demand asking Iran to first compensate for the extensive loss of lives and properties due to the several conflicts Iran had had with various countries over the past five decades as well as during the anti-government protests that were suppressed a few months ago in Iran.
Trump emphasized that henceforth this demand will be on the agenda in all the U.S.-Iran talks.
In an interview with Real America’s Voice, Trump accused Iran as devious negotiators and wanted to let it collapse economically.
With the Strait of Hormuz continuing to be shut, crude oil prices soared, renewing inflation concerns.
Analysts expected the possibility of a near-term rate hike by the U.S. Federal Reserve to combat inflation.
Today, Pakistan’s Foreign Ministry Spokesperson Tahir Andrabi announced that the nation is working to bring the U.S. and Iran back to the negotiating table as well as prevent any efforts by “spoilers” to derail the peace process.
Pakistan’s Interior Minister Mohsin Naqvi arrived in Iran yesterday to hold high-level meetings in Iran to resolve the impasse.
Meanwhile, U.S. Central Command stated that a U.S. Navy MH-60 helicopter fired two Hellfire missiles on a Panama-flagged cargo ship that attempted to violate the U.S. naval blockade on Iranian ports.
Data released by the U.S. Bureau of Labor Statistics showed that the core consumer prices (which exclude food and energy) increased by 0.20% on a month-on-month basis. On an year-on-year basis, the core inflation rate eased for the second month to 2.50% in July.
The consumer price index edged up 0.10% in July on a month-on-month basis, in line with market expectations, and rebounding from a 0.40% decline in June. The annual inflation rate slowed for the second consecutive month to 3.40% in July from 3.50% in June.
Consumer prices still remain higher than levels seen before the U.S.-Iran conflict began and the Consumer Price Index decreased to 333.92 in July from 333.95 in June.
Currently, investors are betting on a 38.10% chance of a 25-basis-point interest rate-hike in the upcoming meeting of the Fed on September 15-16, while the odds on rates being held at the current level stand at 38.10%, according to the CME Group’s FedWatch Tool.
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