On the 7th, U.S. President Trump announced a pause in bombings and attacks on Iran for the next two weeks, significantly easing market concerns over Middle East military conflict. As a result, international oil prices at one point plummeted nearly 20%.
In the new trading day starting on the evening of the 7th, New York crude oil futures prices fell by nearly 20% at one point, dropping below $100 per barrel. Meanwhile, New York gold prices surged over 3% during the session.
After the U.S. and Israel launched attacks on Iran at the end of February, shipping through the Strait of Hormuz was almost completely halted. New York crude oil futures prices soared from below $70 per barrel to above $110 per barrel in early April.
Boosted by the news of a conditional two-week ceasefire, gold and silver prices on the 7th shifted from losses to sharp gains. The June gold futures price on the New York Commodities Exchange climbed above $4,800 per ounce (about 19,341 ringgit), with an intraday increase of nearly 4%; May silver futures jumped by more than 6.5% at one point, surpassing $76 per ounce.
Market participants believe that if the conflict ends, the Federal Reserve may consider cutting interest rates by the end of the year, which would also be bullish for gold prices.