After Iranian Foreign Minister Aragchi announced the reopening of the Strait of Hormuz on the 17th, international gold and silver prices surged.
According to Xinhua News Agency, within just 5 minutes of the announcement, spot gold prices had risen to $4890.78 per ounce. On the morning of the 17th Eastern US time, the June gold futures price on the New York Mercantile Exchange once jumped nearly 2%, and the May silver futures price rose by more than 4%.
Aragchi stated that during the ceasefire between Lebanon and Israel, Iran would open the Strait of Hormuz to all merchant vessels.
Analysts believe this statement from Iran triggered a plunge in international oil prices, which will help ease inflationary pressures in the short term, boost market sentiment, and weaken demand for the US dollar. As the dollar weakened and oil prices fell sharply, gold and silver prices rose significantly.
On the same day, US President Trump confirmed Iran’s statement but said that until a comprehensive agreement is reached with Iran, the United States would continue to enforce its maritime blockade against Iran. Therefore, some analysts believe that although market sentiment has somewhat improved, the overall situation remains fragile.
Aragchi stated that during the ceasefire between Lebanon and Israel, Iran would open the Strait of Hormuz to all merchant vessels.
Analysts believe this statement from Iran triggered a plunge in international oil prices, which will help ease inflationary pressures in the short term, boost market sentiment, and weaken demand for the US dollar. As the dollar weakened and oil prices fell sharply, gold and silver prices rose significantly.
On the same day, US President Trump confirmed Iran’s statement but said that until a comprehensive agreement is reached with Iran, the United States would continue to enforce its maritime blockade against Iran. Therefore, some analysts believe that although market sentiment has somewhat improved, the overall situation remains fragile.