(RTTNews) – Gold reversed course and gained momentum on Monday after reports emerged that the United States and Iran are engaged in indirect talks to explore the possibility of a 45-day ceasefire that could lead to a more permanent resolution to the conflict.
Spot gold rose 0.4 percent to $4,696.35 an ounce, having earlier fallen to a low of $4,601. U.S. gold futures for June delivery were up nearly 1 percent at $4,722.87.
The dollar index pared its early gains amid hopes for an Iran ceasefire. According to the Wall Street Journal and Axios, the foreign ministers of Türkiye, Egypt and Pakistan are attempting to broker talks between Iran and the United States.
However, it said the likelihood of reaching even a partial agreement within the next 48 hours remains uncertain.
The diplomatic push came after US President Donald Trump reiterated his threat to attack Iran’s bridges and power plants, warning that he would bring “hell” to Iran if it did not open the vital waterway by 8 pm Eastern Time on Tuesday.
Tehran condemned Trump’s comments as “incitement to war crimes” and warned it would respond “in kind” to any attack on its infrastructure.
Iran’s presidential office described Thump’s threats as a sign of frustration and anger, saying the Strait of Hormuz would be reopened only when all war damages are compensated from transit tolls.
Meanwhile, a surprise drop in US jobless claims amid fewer layoffs along with stronger-than-expected US jobs data released on Friday dampened expectations for a Federal Reserve rate cut this year.
Initial jobless claims for the week ending March 28 were at a seasonally adjusted level of 202,000, representing a decrease of 9,000 from the previous week’s figure and hitting a two-year low.
March US employment data showed a strong rebound from February’s weak numbers. The U.S. economy added 178,000 jobs in March, well above the consensus estimate of 59,000, while the unemployment rate fell to 4.3 percent from 4.4 percent due to a big drop in labor force participation.
The rise in US gasoline prices felt by US consumers will be on full display when key US inflation data is released this week.
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