Financial Wire

Update: Gold Rises As the USD and Yields Drop, Oil Prices Plunge, as Iran Reopens the Strait of Hormuz

-- (Updates prices.)

Gold was higher midafternoon Friday following as Iran reopened to Strait of Hormuz to commercial traffic, ending the largest ever energy supply shock and easing inflation fears.

Gold for May delivery was last seen up US$75.30 to US$4,883.60 per ounce.

CNBC reported Iran has reopened the Strait of Hormuz to commercial traffic, freeing tankers that have been trapped in the Persian Gulf since the United States and Israel launched their war on the country on Feb. 28 and allowing the resumption of exports from the Persian Gulf region that supplies 20% of daily oil demand.

Oil prices are plunging following the declaration, with West Texas Intermediate crude oil last seen down 11% to US$84.38 per barrel, easing worries a sustained period of high energy prices will boost inflation and force central banks to raise interest rates.

The dollar was lower on following Iran's decision, with the ICE dollar index last seen down 0.19 points to 98.02. Treasury yields were also lower, with yield on the U.S. two-year note last seen down 7.4 basis points to 3.712%, while the 10-year note was paying 4.249%, down 7.1 points.

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