(RTTNews) – Partially offsetting the losses from the two previous trading sessions, gold prices have soared on Tuesday as a plunge in crude oil prices following positive messages from the U.S. and Qatar on an agreement to reopen the Strait of Hormuz dispelled concerns of high interest rates in the U.S. in the near term.
Front Month Comex Gold for September month delivery has surged by $68.80 (or 1.70%) to $4,115.10 per troy ounce.
Front Month Comex Silver for September month delivery has catapulted by $2.394 (or 4.14%) to $60.250 per troy ounce.
Today, in an interview with CNBC on its “Squawk Box” program, U.S. Treasury Secretary Scott Bessent confirmed that the U.S. was in talks with Iran.
Bessent predicted that there is a chance that the U.S. and Iran could reach a deal on Tuesday or Wednesday to reopen the Strait of Hormuz and progress to a more normalized position in the ongoing conflict.
Declining that Iran would be allowed to charge a toll, Bessent stated that it would be a freedom of movement.
Last Friday, U.S. President Donald Trump threatened to carry out a massive attack on Iran at levels not seen since World War II.
However, late Saturday, Trump called off the attacks to offer diplomacy yet another chance at the request of U.S. allies in the gulf.
On Sunday, onboard Air Force One, Trump stated that fresh negotiations are set to take place with Iran on Monday afternoon.
However, Iran’s semi-official news agency Mehr cited Iranian Foreign Ministry as declining any plans for talks with the U.S.
Through Truth Social, Trump accused the Iranian leadership of being duplicitous and asserted that the U.S. is talking with Iran for a solution irrespective of whether Iran admits it or not. Further, he categorically stated that the U.S. was in complete control of the Strait of Hormuz.
Yesterday, NBC News reported Trump as stating that the U.S. had “many talks” with Iran. He once again stressed that at the request of Qatar, Saudi Arabia, and the United Arab Emirates, the U.S. is engaged in talks with Iran but cautioned that this is the last chance being given to Iran.
Today, Qatar’s Foreign Ministry spokesperson Majed Al Ansari stated that its diplomats were working with other mediators including Pakistan and Oman to facilitate negotiations and exchange drafts between the U.S. and Iran.
These positive signals about the resumption of shipping traffic across the Strait of Hormuz eased crude oil supply-disruption concerns.
Oil prices went downwards and tempered inflation pressure, which lowered the expectations of any near-term U.S. rate hike bets.
Last week, the U.S. Federal Reserve maintained interest rates at the current level.
Investors are now awaiting a spate of employment reports to be released one after the other over this week to gauge the monetary policy outlook of the U.S. Federal Reserve.
A strong labor market could be supportive for another rate hike, while weaker data could hold back the Fed from any rate hikes.
The U.S. dollar index was last seen trading at 99.93, down by 0.08 (or 0.08%) today.
Currently, investors are betting on a 56.90% chance of a 25-basis-point interest rate-hike in the upcoming meeting of the U.S. Federal Reserve on September 15-16, as against yesterday’s 64.50%, according to the CME Group’s FedWatch Tool.
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