Gold Prices Mixed As Dollar Consolidates Amid Doubts Over US-Iran Ceasefire

Spot gold edged up by 0.3 percent to $4,731.56 an ounce while U.S. gold futures for June delivery were down half a percent at $4,755.47.

The U.S. dollar index consolidated above the 99.00 level and oil prices were up more than 3 percent as Iran halted the passage of oil tankers through the Strait of Hormuz after accusing the United States of violating three clauses of the 10-Point Proposal.

Uncertainty is growing around the ceasefire as both sides appear to be working with different versions of the peace proposal.

Sporadic fighting continued throughout the Middle East, including in Lebanon, where Israel’s military launched what it described as its most powerful attacks on Wednesday, killing hundreds of people and creating panic.

Tehran, which has emerged from the battle with control of the Strait of Hormuz, called U.S. talks ‘unreasonable’ following Israeli strikes.

Several strikes were reported across the Gulf region, with Saudi Arabia’s East-West Pipeline, a critical artery bypassing the Strait of Hormuz, reportedly hit in an Iranian drone attack on Wednesday.

The heads of the World Bank, International Monetary Fund (IMF) and the UN’s World Food Program (WFP) have warned that the burden from sharp increases in food, fuel and fertilizer prices would fall most heavily on the world’s most vulnerable populations.

Amid a sharp escalation in violence, U.S. Vice President has clarified that the ceasefire agreement did not include Lebanon, calling the confusion a “misunderstanding” by Iranian negotiators.

U.S. President Donald Trump announced that the U.S. military will remain in and around Iran until the “real agreement” on a ceasefire “is fully complied with”, warning of more conflict otherwise.

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