Gold and Precious Metals Falls Again on Monday As Middle East Tensions Heat Up
On Monday morning (July 13th), the prices of gold and precious metals have fallen again. Gold traded at around $4,015 per ounce at the time of this article's publication, as U.S. president Trump has confirmed that the U.S. is going back to restore blockade on Iran.
As reported by Al Jazeera, the U.S. president Donald Trump has declared that the country is bringing back a blockade against Iran, part of his bid to take command of the Strait of Hormuz, and he also believed that Washington stands to earn substantial sums for policing this vital shipping lane.
According to Trump, the U.S. intends to charge a fee on vessels passing safely through the strait, with the president putting the figure at a 20% cut of all cargo carried through it.
Iran, for its part, says it has carried out strikes on Kuwait, Oman, Bahrain, and Jordan, describing them as retaliation against US military installations following Washington's renewed bombing of Iran's southern coastline.
Trump also renewed his threats toward Tehran, warning that American forces would strike the country with great force.
Due to these tensions that have been heating up since the weekend, precious metals (including gold and silver) have been falling again. Gold is trading only slightly above $4,000 per ounce, whereas silver is struggling to keep its $58 support level. Miner stocks like NEM and FSM are also not doing so good. FSM price today, for a reference, is trading at only $8.4, falling for more than 1% compared to its closing price last Friday.
Related assets: Gold, Silver, Palladium, Platinum