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On Sunday, US Vice President JD Vance left Islamabad after talks with Iran ended without a deal, saying he had put forward a “final and best offer.”
Iran’s Foreign Ministry said the two sides had agreed on a number of points, and that it is natural no agreement was reached in a single day.
Hours after US peace talks with Iran broke down in Pakistan, Donald Trump said the Navy would begin a blockade, “seeking and intercepting” vessels that had paid Iran to pass through the Strait of Hormuz, before clearing the waterway of sea mines.
He added that any Iranian forces firing on US troops or commercial shipping would be “BLOWN TO HELL.”
President Trump’s announcement that the US military would blockade the Strait of Hormuz introduces a risky new escalation that could draw American forces into broader global economic fallout caused by the conflict.
The narrow waterway lies along Iran’s coastline, and any operations there would remain exposed to mines, drones, and attack boats. While Trump has repeatedly highlighted the US military’s decimation of Iran’s navy, the paramilitary Islamic Revolutionary Guard Corps still maintains a significant portion of its fleet of nimble speedboats used to control the Strait.
More than 60% of these fast-attack craft and speedboats remain intact and continue to pose a threat, according to Farzin Nadimi, a senior fellow focused on Iran at the Washington Institute.
Gold and silver futures are showing a rise in bearish sentiment, while crude oil futures are strengthening amid growing fears of a global slowdown driven by potential disruptions to oil and gas supplies through the Strait of Hormuz.
Technical Levels to Watch
On the daily chart, gold futures opened with a gap down at $4,693.65, tested a high of $4,766.62 and a low of $4,686.80, and were trading at $4,739.
Gold futures are struggling to hold current levels, as rising fears of an economic slowdown may extend selling pressure, potentially pushing prices toward the next support at the 100 EMA ($4,636.66). This follows a “bearish crossover,” with the 20 EMA and 9 EMA moving below the 50 EMA, while gold futures are also trading below the 9 EMA ($4,733).
On the daily chart, silver futures also opened with a gap down at $73.790, tested a high of $75 and a low of $73.662, and were trading at $74.280.
This reflects increasing bearish pressure, with silver futures trading below the 9 EMA following a “bearish crossover,” and currently remaining below the 9 EMA ($74.430).
Meanwhile, crude oil futures are holding above $100 and are likely to remain strong due to rising bullish sentiment, supported by comments from President Trump that reinforce the current uptrend this week.
If crude oil futures break above the immediate resistance at $112, stagflation concerns could intensify, as stagnant growth combined with elevated inflation may continue to weigh on precious metals.
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Disclaimer: Readers are advised to take any position in gold at their own risk, as this analysis is based solely on observations.
