Key Takeaways:
COMEX gold futures tested the $2,400 per ounce mark on Wednesday, climbing 0.8% as the market weighed conflicting reports on the progress of war-ending talks between the United States and Iran.
"Look, this is very simple. Iran cannot have a nuclear weapon," President Donald Trump told reporters at the White House, adding there have been "very good talks" and that it is "very possible that we will make a deal." He had earlier announced a pause in a US naval operation to escort shipping through the Strait of Hormuz, citing "great progress" in negotiations.
However, Iran struck a more cautious tone, with Foreign Ministry spokesman Esmaeil Baghaei describing reports of an imminent deal as exaggerated. Separately, lawmaker Ebrahim Rezaei characterized the US proposal as "more of an American wish list than a reality," according to wire reports. The diplomatic exchanges are reportedly being mediated by Pakistan.
The talks center on a one-page memorandum that would reportedly restore shipping through the Strait of Hormuz, ease US sanctions, and set limits on Tehran's nuclear program. The outcome remains a key driver for gold, a traditional safe-haven asset. A successful diplomatic resolution could reduce demand for gold, while a failure in negotiations could escalate tensions and drive prices significantly higher.
The diplomatic push continues amid sustained US pressure. The US military confirmed it had disabled an Iranian-flagged oil tanker in the Gulf of Oman for allegedly violating a blockade. State Department spokesman Tommy Pigott said Washington would not "normalize a country being able to determine who is allowed to use an international waterway," while stressing a preference for a diplomatic outcome.
Other regional powers are watching closely. Israeli Prime Minister Benjamin Netanyahu said he planned to speak with Trump, reiterating that both leaders agree Iran must not retain enriched uranium—a consistent point of contention with Tehran.
The core disagreements over Iran's nuclear activities and control of the vital waterway, through which about 20% of the world's oil supply passed before the conflict, remain unresolved. The market is now awaiting a formal response from Tehran to the latest US proposal.
This article is for informational purposes only and does not constitute investment advice.
