Gold Soars After Iran Shuts Strait Of Hormuz Despite U.S. Peace Push

(RTTNews) - Rebounding from yesterday's plunge, gold prices have surged on Friday amid an escalation of gulf conflict after Iran's military asserted taking full control of the Strait of Hormuz, even while the U.S. paused attacks on Iranian energy assets, seeking a diplomatic resolution to the crisis.

Front Month Comex Gold for April month delivery has soared by $136.10 (or 3.11%) to $4,512.40 per troy ounce.

Front Month Comex Silver for April month delivery has also skyrocketed by $3.133 (or 4.63%) to $70.830 per troy ounce.

As the U.S.-Israel versus Iran war entered day number twenty-eight, U.S. President Donald Trump renewed his diplomatic efforts to end the war.

Days before, the U.S. delivered a 15-point-peace proposal to Iran via Pakistan.

Pakistan's Foreign Minister Ishaq Dar stated that indirect U.S.-Iran talks are ongoing and observed that Iran was studying the U.S. proposals. He added that Turkey and Egypt are backing the efforts, while China has welcomed the push, calling it a "glimmer of hope."

Prior to this, on Monday, Trump ordered a pause on any military strike on Iran's energy and power infrastructures for a five-day period.

With the deadline coming to a close today, through his social media platform Truth Social, Trump announced that he is extending the "pause period" on the strikes until April 6, Monday.

Trump also asserted that the U.S.-Iran talks are "going very well" despite a section of news outlets reporting on the contrary.

U.S. special envoy Steve Witkoff stated that the U.S. is seeing "strong signs" that Iran could agree for negotiations.

Ahead of a planned United Nations Security Council meeting to discuss attacks on civilian infrastructure in Iran, Israel claimed it launched a wave of strikes "in the heart of Tehran" early Friday.

Israel also continues to target regions in Beirut, Lebanon in its drive against Hezbollah.

In one of its strongest warnings, Iran's Islamic Revolutionary Guards Corps announced that the Strait of Hormuz has been closed.

Asserting that it has full control over the strait, the IRGC warned that any ship attempting to pass through the channel will face a "harsh response." Adding to the threat, Iran stated that it would widen the restrictions to ships linked to countries backing the U.S. or Israel.

In the U.S. today, revised data from the University of Michigan revealed that the Consumer Sentiment Index fell to 53.3 in March, (the lowest level in three months) from 56.6 in February, below market expectations of 54.0.

The Consumer Expectations Index tumbled to 51.7 in March, the lowest in four months, compared to 56.6 in February.

Year-ahead inflation expectations jumped to 3.8 percent in March from 3.4 percent in February, reflecting the largest one-month increase since April 2025.

Fed Vice Chair of Supervision Philip Jefferson stated that the war will push up inflation.

Fed Governor Lisa Cook stated yesterday that the war in Iran has shifted the balance of risks more toward inflation over employment.

The U.S. Federal Reserve left the funds rate steady in the 3.50%-3.75% target range in its March meeting.

Experts are concerned of a serious economic crisis if Iran enforces the closure and view that demand for gold revived after traders resorted to "buying in dips" over the past few days when gold declined.