(RTTNews) – Gold prices have slumped on Wednesday, reversing the gains from yesterday’s session following reports of fresh military strikes in the Middle East that triggered concerns of renewed escalation. In addition, stronger private jobs data pushed the U.S. dollar value higher and weighed on gold prices.
Front Month Comex Gold for August month delivery has tumbled by $50.10 (or 1.11%) to $4,469.80 per troy ounce.
Front Month Comex Silver for August month delivery has plunged by $2.113 (or 2.79%) to $73.740 per troy ounce.
As the U.S.-Iran war entered day number 96 today, the planned signing of a Memorandum of Understanding between the two countries remains delayed following the latest exchange of attacks in the gulf.
Since April, a U.S.-mediated ceasefire between Israel and Lebanon holds in place. However, Israel continues bombing Lebanon.
Iranian Foreign Minister Abbas Araghchi had stated that talks with the U.S. could continue only when Israel halts its attacks.
U.S. President Donald Trump claimed that he had secured a ceasefire and both sides would stop attacking each other and asserted that after his intervention, Israeli forces pulled back from a planned strike in Beirut.
Today, according to Lebanon’s state-run news agency, Israel renewed its strikes targeting the southern Lebanese city of Tyre.
Meanwhile today, U.S. Central Command announced that in an act of self-defense, U.S. forces stationed near Iran attacked Qeshm Island, and in retaliation, Iran targeted Kuwait and Bahrain.
Bahrain’s military stated that it intercepted three missiles from Iran and several drones that targeted civilian areas.
The Kuwaiti government stated that an Iranian drone struck a passenger terminal at the country’s international airport which killed one person and injured more than 60 people.
These mutual strikes threw doubts over the longevity of the U.S.-Iran ceasefire that has been in place since early April.
In an interview with the New York Post, Trump stated that Iran’s Supreme Leader Ayatollah Mojtaba Khamenei is engaged in the ongoing negotiations to end the war.
However, Trump stated that he was not in any hurry to end the crisis and acknowledged that the U.S. naval blockade could continue for a few more weeks. He stated that he felt the crisis will resolve fairly quickly.
Yesterday, while testifying before Congress, U.S. Secretary of State Marco Rubio stated that Iran has agreed to discuss its nuclear programs, which is a shift from its earlier rigid stance.
The Strait of Hormuz continues to remain closed, keeping supply disruption concerns alive and thereby pushing oil prices upwards. Oil-price-linked inflationary pressure weighed on gold prices.
The Mortgage Bankers Association of America’s Purchase Index decreased to 164.80 in May from 169.70 of the previous week.
Data released by Automatic Data Processing revealed that private businesses added a net 122,000 jobs in May, a new high since January 2025, and above forecasts of 117,000. Eight out of 10 sub-sectors showed gains.
This robust data strengthened the U.S. dollar value, pulling down gold even further.
The attention of traders is riveted now on the upcoming U.S. nonfarm payrolls data release on Friday as it could shed some light on the trajectory of U.S. Federal Reserve’s monetary policy.
Economists are of the view that any positive signal on the reopening of the Strait of Hormuz could revive the market and lift gold prices.
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