Gold rises for third session on US-Iran peace deal hopes
Updated
Updated · Reuters · May 7
Gold rises for third session on US-Iran peace deal hopes
12 articles · Updated · Reuters · May 7
Spot gold gained 0.3% to $4,701.19 an ounce, while June US futures rose 0.4% to $4,710 as Iran reviewed a US proposal.
A 0.1% weaker dollar and easing Treasury yields supported bullion, while Brent crude fell about 6% this week on optimism the Middle East war could end.
Gold has dropped more than 10% since the war began in late February, and investors are now watching Friday's US jobs report for clues on Federal Reserve policy.
If the fragile US-Iran peace deal collapses, will oil prices surge past their wartime highs?
Will a failed US-Iran peace deal force the Federal Reserve to raise interest rates again?
With war driving inflation, why are central banks reversing course and selling their gold reserves?
Fragile US-Iran Peace Talks and Their Ripple Effects on Oil Prices, Inflation, and Recession Risks
Overview
In early May 2026, President Trump paused the US naval operation 'Project Freedom' following Iranian attacks and at Pakistan's request, allowing time for Iran to consider US proposals. This diplomatic progress, supported by Pakistan's mediation and Iran's partial flexibility on uranium handling, reduced geopolitical risks and led to a drop in oil prices from $115 to around $103 per barrel. Lower oil prices eased global inflation and recession fears, boosting equity markets and giving the Federal Reserve room to ease interest rates. However, unresolved disputes over Iran's nuclear program and ongoing regional tensions, including a fragile Israel-Hezbollah ceasefire, keep gold prices steady amid mixed safe-haven demand and monetary pressures.