(RTTNews) – Gold prices fell on Friday as little progress was made in US-Iran peace talks and the Strait of Hormuz remained effectively closed, pushing oil prices to $107 a barrel.
Spot gold slipped 0.2 percent to $4,685.70 an ounce and was down nearly 3 percent this week. US gold futures were down 0.3 percent at $4,683.02.
Tensions rose after Iran flexed its tight grip on the key Strait of Hormuz and US President Donald Trump said he had ordered the Navy to “shoot and kill any boat” that is laying mines in the waters of the Strait of Hormuz.
Trump said the United States was in no rush to resolve the conflict with Iran, describing Iran’s leadership as being in turmoil.
Media reports have revealed that Speaker of the Iranian Parliament Mohammad Bagher Ghalibaf has resigned from the US talks, signaling a shift towards radical unity.
Brent crude futures climbed as high as $107 a barrel, marking a fifth straight session of gains and the longest rally since January on growing fears of prolonged supply disruptions in the Persian Gulf.
The dollar was set for its first weekly rise in three weeks ahead of several central bank meetings next week.
With several central banks, including the US Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan, scheduled to announce their policy decisions next week, investors are waiting to see whether policymakers will pursue rate hikes in the coming months.
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