Gold Roughly Flat As Iran Awaits U.S. Response To Peace Plan

(RTTNews) - Gold prices have ticked lower on Monday as a U.S. ultimatum to Iran to strike a deal before time runs out triggered war concerns while reports of Iran submitting a new proposal to the U.S. to end war eased Middle East tensions. The U.S. is yet to officially respond.

Front Month Comex Gold for June month delivery has slipped by $3.00 (or 0.07%) to $4,558.90 per troy ounce.

Front Month Comex Silver for June month delivery has edged down by $0.011 (or 0.01%) to $77.270 per troy ounce.

The U.S.-Israel's war against Iran that began on February 28, entered day number 80 today.

Currently, the ceasefire announced by the U.S. early in April to facilitate negotiations is still holding though diplomatic measures have not yielded a breakthrough.

The Strait of Hormuz, a critical chokepoint in the Persian Gulf through which around one-fifth of the world's global oil and energy transited, has been effectively blocked.

Soon after the war erupted, Iran closed the strait and weeks later, the U.S. Navy enforced a blockade on all ships moving to and from Iranian ports. The twin blockade brought major economies to a standstill as a result of increasing crude oil prices.

Both nations have disagreed on each others' peace proposals, leaving the Hormuz strait closed until now.

Last week, Trump visited China for a two-day summit where he had extensive discussions with Chinese President Xi Jinping.

Since China imported 90% of Iran's oil exports and is a longstanding ally of Iran, expectations were running high that China would offer to mediate between both nations to end the crisis. However, at the conclusion of the summit, no announcement on a possible Chinese intervention came through, renewing concerns of war once again.

On his return, Trump stated that he ordered the ceasefire only at the "request of Pakistan" and other allies though he was not personally favoring it.

On Sunday, indirectly urging Iran to soon strike a deal with the U.S., U.S. President Donald Trump messaged via his social media platform, Truth Social, that the "clock is ticking" for Iran and asked Iran to "get moving fast." Trump warned that if Iran fails to do so, there "won't be anything left of them."

Iran's Defense Ministry spokesperson Reza Talai-Nik responded by stating that the Iranian military is fully prepared to successfully combat any U.S.-Israeli aggression.

A spokesperson for Iran's Foreign Ministry stated that negotiations are going on with the U.S. and added that Iran's concerns were conveyed to the U.S.

Today, Iran's Tasnim news agency reported that the regime has submitted a proposal comprising 14 points to the U.S. through Pakistan.

Attacks have not ceased in the gulf neighborhood. The United Arab Emirates announced that a drone strike hit the electrical generator located outside the inner perimeter of Barakah Nuclear Energy Plant. The U.A.E. had also successfully dealt with two other drone attacks.

Saudi Arabia stated today that it intercepted three drones.

Israel's Channel 13 reported that several U.S. cargo planes have landed in Tel Aviv, carrying ammunitions from U.S. bases in Germany.

Rising energy costs are fueling global inflationary concerns and traders are betting on rate hikes by major central banks, including the U.S. Federal Reserve.

Minutes from the Fed's April conclave are awaited to get a glimpse on the direction of U.S. monetary policy.

Though the outgoing Federal Reserve Chair Jerome Powell's term ended last Friday, he is holding as Chair Pro Tempore until the new Chair Kevin Warsh is officially sworn in to maintain continuity. No swearing-in date for Warsh has been announced yet.

According to CME Group's FedWatch Tool, investors are betting on 99.20% chances that the Federal Reserve would hold the rates at the current level of 3.50% to 3.75% range in its upcoming meeting on June 16-17.

Investors chose to wait and watch the developments in the gulf crisis and refrained from big moves, thereby gold ended little changed.