Gold and Silver Flat as U.S. Navy Blockades Strait of Hormuz

 

Gold and Silver Flat as U.S. Navy Blockades Strait of Hormuz

(Bullion News Network) – Gold and silver prices moved little on Monday, moving sideways as traders braced for another bout of volatility in the oil market. The spot price of gold pulled back to start the trading week, shedding fewer than $4 per troy ounce. The spot price of silver also marginally decreased, retreating by just a few cents after paring some of its earlier losses.

The price action left the gold-silver ratio largely unchanged, with a negligible gain of 0.1:1. The relatively calm start to the trading week came as the United States Navy began its blockade of the Strait of Hormuz.

Wall Street gained as U.S. forces began the blockade, with American traders seeming hopeful that President Donald Trump’s drastic action will secure a peace deal between the United States and Iran. The U.S. leader vowed to blockade the Strait of Hormuz over the weekend after a marathon negotiation session with Iran ended without a deal.

According to Trump, Iran’s attempts to charge tolls for ships passing through the Strait of Hormuz, a vital chokepoint for the international oil trade that has served as a valuable bargaining chip for Tehran, constituted an unworkable violation of the terms of the ceasefire the two nations signed last week.

In a Truth Social post published on Monday, Trump claimed that 34 ships passed through the Strait of Hormuz on Monday.

34 Ships went through the Strait of Hormuz yesterday, which is by far the highest number since this foolish closure began. President DONALD J. TRUMP

In a later post, the U.S. leader reinforced his belief that the United States achieved its objectives in the war against Iran. “Iran has been totally obliterated, militarily, and otherwise,” Trump said before criticizing the New York Times for its reporting on the conflict. It is unclear at this point how long the blockade on the Strait of Hormuz may last. The move is intended to disrupt the Iranian oil trade, which is a major source of income for its government, in order to force Iran to strike a new peace deal with U.S. leaders.

On Monday evening, Iran suggested a 5-year suspension to the country’s nuclear activity. The offer was meant to counter Vice President JD Vance’s request for a 20-year suspension during negotiations over the weekend. Trump rejected Iran’s new offer. Meanwhile, Iranian leaders threatened to retaliate against the blockade, with one Revolutionary Guard spokesperson threatening that they would “introduce new weapons of warfare.”

Reopening the Strait of Hormuz remains one of the American military’s most vital objectives in the conflict with Iran. On Monday evening, Vice President JD Vance told reporters that additional talks between the U.S. and Iran may occur, but that the question should be “put to the Iranians.” Vance elaborated when asked that it is unlikely that a deal will occur without Iran agreeing to reopen the Strait.

Precious metals barely moved on the news as Wall Street logged gains and investors hoped for a peace deal between the U.S. and Iran.

On Wednesday, traders will be able to review the Federal Reserve’s “Beige Book,” a report that offers insight into on-the-ground economic indicators in each of the central bank’s districts. This data could impact markets, as it may give investors a better look at how the U.S. economy is performing heading into Q2.