Gold climbs as Trump cites progress on Hormuz peace deal
Gold prices advanced more than 1% in early trading on Monday after US President Donald Trump said Washington and Tehran had held extensive negotiations on a memorandum of understanding to reopen the Strait of Hormuz, raising hopes for a de-escalation in the Middle East.
Gold per ounce advanced 1.1% to $4,559.07 in the spot market as of 0830 GMT on Monday, while US gold futures gained 0.8% to reach $4,559.80, according to trading data. Silver prices also climbed more than 2% to $77 per ounce, tracking the broader precious metals rally.
Diplomatic signals
US President Donald Trump stated that Washington and Tehran have held extensive negotiations on a memorandum of understanding for a peace agreement that would reopen the Strait of Hormuz to trade. His comments strengthened expectations that the vital maritime chokepoint — blocked since the outbreak of hostilities between US-Israeli forces and Iran — could soon resume commercial operations.
Maritime blockade
The Strait of Hormuz serves as a critical artery for global oil and gas shipments, with its closure since late February disrupting international energy markets and pushing prices higher. Diplomatic efforts to secure a ceasefire have intensified as the conflict enters its third month, with both sides facing mounting economic pressure.
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