Gold Holds Near $4,729 as Iran Ceasefire Doubts Meet U.S. CPI Test
Updated
Updated · Reuters · May 12
Gold Holds Near $4,729 as Iran Ceasefire Doubts Meet U.S. CPI Test
7 articles · Updated · Reuters · May 12
Spot gold edged down 0.1% to $4,728.79 an ounce by 0418 GMT after touching a three-week high earlier, while June U.S. gold futures rose 0.2% to $4,737.60.
Trump's warning that an Iran ceasefire was "on life support" kept geopolitical risk elevated, but traders were also bracing for U.S. CPI data due at 1230 GMT for clues on the Fed's next move.
Oil rose nearly 1% and the dollar extended gains, reinforcing concern that higher energy costs could feed inflation and keep interest rates elevated, a headwind for non-yielding gold.
BofA and Goldman Sachs have already pared back expectations for U.S. rate cuts this year, while markets also watch Trump's China visit and planned meeting with Xi Jinping for broader geopolitical signals.
As conflict fuels inflation, will gold's safe-haven appeal outweigh the pressure from rising interest rates?
Can the upcoming U.S.-China summit resolve the global economic crisis sparked by the Strait of Hormuz blockade?
With 20% of global oil blocked, how will the world avert a recession and looming humanitarian crisis?
Gold Outlook 2026: Bullish Forecasts, Geopolitical Flashpoints, and Central Bank Demand Drive Prices Toward $6,300
Overview
In early May 2026, the gold market saw a notable rebound but continued to be highly volatile. Despite this, institutional sentiment remains bullish, with the average gold price forecast for 2026 revised upward to $4,916, reflecting robust medium-term expectations. This optimism is driven by persistent global uncertainty, ongoing central bank gold purchases, and steady demand for gold in asset allocation. However, the market does not offer a clear buy or avoid signal, highlighting the importance of a disciplined investment approach amid ongoing volatility and shifting economic and geopolitical factors.