(RTTNews) – Partially offsetting the sharp decline from yesterday’s session, gold prices have edged higher on Thursday as optimism on a resolution to the Middle East crisis increased after Israel and Lebanon consented to a ceasefire. In addition, both the U.S. and Iran confirmed that mutual talks to end the war were continuing without a break.
Front Month Comex Gold for August month delivery has climbed by $36.10 (or 0.81%) to $4,503.00 per troy ounce.
Front Month Comex Silver for August month delivery has advanced by $0.346 (or 0.47%) to $74.330 per troy ounce.
With the U.S.-Iran war entering day number 97 today, the Strait of Hormuz continues to remain effectively shut.
Late Wednesday, U.S. President Donald Trump stated that U.S.-Iran negotiations were going on very well. Trump predicted that the talks could yield productive results over the coming weekend.
Of significant note, Trump expressed an intention to separate the U.S.-Iran discussions from the conflict between Israel and Lebanon.
Trump reaffirmed that the U.S. had discussions with Hezbollah for the first time ever, wherein they have agreed not to attack Israel. Trump added that Israel too agreed to halt its attacks on Lebanon.
Recently, U.S. Central Command announced carrying out strikes on an Iranian control tower in Qeshm Island as an act of self-defense.
In retaliation, Iran struck U.S. bases in Kuwait and Bahrain. Iran’s attack hit a passenger terminal at Kuwait International Airport leaving one dead and more than 60 wounded.
However, Trump downplayed the exchange of fire and reaffirmed that the ceasefire is still in place.
In contrast to Trump’s stance, Iran’s Foreign Minister Abbas Araghchi stated that while the channels of communication with the U.S. remain open to end the war, so far no tangible progress has been made.
Over the end of April, the U.S. mediated a ceasefire between Israel and Lebanon. However, Israel continued its attacks targeting Hezbollah militant group in Lebanon.
Yesterday, after the fourth round of trilateral negotiations involving the U.S., Israel, and Lebanon in Washington, the U.S. State Department announced in a joint statement that Israel and Lebanon have agreed to renew the ceasefire.
According to the proposal intended for broader security and peace in the Middle East, both sides would stop attacks. The deal calls for Hezbollah withdrawing from areas south of Litani River, and in addition, Lebanon will erect pilot zones wherein Hezbollah will not be allowed to enter. Of note, Hezbollah has rejected the ceasefire agreement.
With signals of an to end U.S.-Iran and Israel-Lebanon hostilities growing brighter, oil prices plunged sharply, decreasing the concerns of inflation. As a result, gold prices moved upside.
Yesterday, in the U.S. Congress, the House of Representatives voted 215 to 208 to approve a resolution to block Trump from continuing the war with Iran.
As of now, the voting is largely symbolic as the move must pass the Senate and the House of Representatives to be legislated into an act. Further, Trump can cast his vote to veto the resolution or legally challenge it.
On the data front, the U.S. Labor Department announced that the number of people claiming unemployment benefits increased by 13,000 to 225,000 over the last week of May, above market expectations of 212,000.
The continuing jobless claims decreased to 1,777,000 for the week ending May 23, from 1,785,000 of the previous week.
According to Challenger data, U.S.-based employers announced 97,006 job cuts in May, the most since January, compared to 83,387 in April.
The attention of investors is now focused on the U.S. nonfarm payrolls data for May to be released tomorrow to derive clues on the U.S. Federal Reserve’s monetary policy path.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com