Gold swings on Iran proposal; U.S. response eyed

NEW YORK, Nov. 6 (GoldSquawk) - COMEX gold swung $80.30 an ounce from a $4,127.10 high at 19:48 UTC to a $4,046.80 low at 05:22 UTC after Iran said it had sent the United States a nuclear proposal via Qatar, with traders weighing U.S.-Iran diplomacy and wider conflict risks, according to GoldSquawk price data and Reuters reporting cited by MarketScreener.

For traders, the next move in bullion may hinge on whether that diplomatic channel progresses, because Reuters reported the proposal will only be discussed after Washington meets Tehran’s seven demands and that Washington is reviewing it, while Reuters also said fears that the conflict could keep pressure on shipping through the Strait of Hormuz were supporting safe-haven demand.

Proposal sent through Qatar

The first market reaction came after a 19:42 UTC headline reporting that Iran had sent the U.S. a nuclear proposal via Qatar and wanted it discussed only after Washington met seven demands, according to Bloomberg.

Before that headline, COMEX gold futures were at $4,110.40 an ounce at 19:37 UTC, according to GoldSquawk data. Gold then rose to $4,127.10 at 19:48 UTC, according to the same data.

At 05:37 UTC on Friday, a senior Iranian official told Reuters that Iran had sent the nuclear proposal to the United States via Qatar, according to a headline published by Investing.com. Reuters separately reported that Tehran had sent the proposal through Qatar, that it would only be discussed after Washington met Iran’s seven demands, and that Washington was reviewing the proposal, according to a report carried by APA.

The Times of Israel said Reuters framed the proposal as part of the broader Iran-U.S. diplomatic track during the ongoing war, and said the Reuters report carried the same core claim as the earlier Bloomberg-style headline: that Iran transmitted a nuclear proposal via Qatar and tied talks to seven conditions.

Why bullion traders care

Reuters, as cited by MarketScreener, said gold was volatile as market participants weighed U.S.-Iran diplomacy. The same report said traders were also watching fears that the conflict could keep pressure on shipping through the Strait of Hormuz, supporting safe-haven demand.

That leaves two linked questions for the gold market: whether Washington answers the proposal in a way that advances talks, and whether any change in the Iran-U.S. track eases or sustains the geopolitical risk premium that has fed haven buying, according to Reuters’ framing of the issue.

By 05:31 UTC, COMEX gold futures were at $4,051.70 an ounce, after touching $4,046.80 nine minutes earlier, according to GoldSquawk data.

Next catalyst later Friday

Geopolitics is sharing the screen with U.S. macro data later Friday. Forex Factory consensus showed U.S. non-farm payrolls are due at 13:30 UTC, with economists expecting a 65,000 increase in employment, average hourly earnings rising 0.3% month on month, and the unemployment rate holding at 4.2%.

Canada’s employment report is also due at 13:30 UTC, and Bank of Japan Governor Kazuo Ueda is scheduled to speak at 16:00 UTC, according to the economic calendar.

As of 05:31 UTC, COMEX gold futures were at $4,051.70 ahead of Washington’s next response on Iran and the U.S. jobs data at 13:30 UTC.