(RTTNews) – Extending the slide from yesterday’s session, gold prices have tumbled on Wednesday after U.S. President Donald Trump stated that the ceasefire agreement between the U.S. and Iran is now “over” while both nations exchanged heavy strikes in the Middle East.
Front Month Comex Gold for August month delivery has slumped by $77.50 (or 1.86%) to $4,079.90 per troy ounce.
Front Month Comex Silver for August month delivery has nosedived by $2.908 (or 4.76%) to $58.205 per troy ounce.
On June 17, Trump and Iran’s President Masoud Pezeshkian signed an interim Memorandum of Understanding to explore diplomatic measures to end the war between the two nations that started on February 28.
Iran reopened the Strait of Hormuz, which it had shut soon after the war broke out. The U.S. lifted the sanctions it had imposed on Iranian exports and in addition, revoked the naval blockade enforced on Iranian ports.
With shipping traffic across the strait picking up, crude oil prices started to decline and oil-linked inflationary concerns that affected major global economies for more than 100 days began easing.
The temporary ceasefire was put to test last week when a Singapore-flagged vessel and a Panama-flagged ship were attacked by unidentified projectiles.
The U.S. launched strikes on Iran and Iran attacked U.S. bases in its neighborhood. However, both nations reconciled later.
The preliminary round of talks between the U.S. and Iran concluded in Qatar with the next round set to begin after July 9 following the burial of Iran’s late Supreme Leader Ayatollah Ali Khamenei.
Yesterday, according to the U.K. Maritime Trade Operations center, three tankers transiting across the Strait of Hormuz were hit by projectiles.
In the first attack, a Qatari tanker Al Rekayyat loaded with Liquified Natural Gas, sailing south along the Omanian waters was struck on its port side by an unknown projectile.
Iran’s state media reported that a vessel came under attack after it ignored warnings but Iran did not officially claim responsibility for the assault.
According to the Associated Press, one more oil tanker was hit on its left side while exiting the Omani-Emirati border while another was struck by a drone off Oman.
No casualties or environmental impact were reported in these three incidents.
Attending a North Atlantic Treaty Organization summit in Turkey, Trump stated that according to him, the ceasefire and the interim agreement to end the war with Iran are now “over.” However, he stated that he would allow negotiators to continue the discussions though he thought that it was a waste of time dealing with the Iranian regime.
Yesterday, U.S. Central Command announced that it hit more than 80 targets in Iran with precision munitions.
The strikes carried out with Air Force jets and tactical Navy aircrafts, targeted Iran’s air defense systems, command and control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 small boats of Iran’s Islamic Revolutionary Guards Corps.
The U.S. also revoked its waiver of temporary sanctions on Iranian oil exports with immediate effect.
The IRGC claimed that it had conducted a joint missile and drone operation against nearly 85 U.S. military sites in Bahrain and in Kuwait.
Trump warned that the U.S. could restart attacking Iran tonight.
With geopolitical risk premium returning, crude oil prices catapulted today.
WTI crude oil for August month delivery was last seen trading at $74.12, up by $3.68 (or 5.22%).
As uncertainty over peace talks grows and inflationary pressures take prominence, gold prices slumped today.
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