Gold has climbed for three days in a row as hopes of a peace deal between the US and Iran pushed oil prices lower and eased concerns about inflation.
Spot gold rose 1% to $4,736.61 an ounce on Thursday. US Gold Futures for June gained 1.1% to $4,746.86.
On Wednesday, gold jumped more than 3% — its biggest single-day gain since late March. That move came after oil prices fell sharply on reports that US-Iran talks were making progress.
News outlet Axios reported that the White House was close to a memorandum of understanding with Iran to end the conflict. Iran said it was reviewing the proposal. President Donald Trump said he believed Tehran wanted a deal.
BREAKING: President Trump releases a statement amid reports that a deal to end the Iran War is imminent.
"Assuming Iran agrees to give what has been agreed to… Epic Fury will be at an end." pic.twitter.com/5YnAkg1Y8a
— The Kobeissi Letter (@KobeissiLetter) May 6, 2026
Trump posted on social media Wednesday that the US would end its military campaign and lift its blockade of the Strait of Hormuz, assuming Iran agreed to terms — though he called that “perhaps, a big assumption.”
Oil fell more than 7% on Wednesday before steadying on Thursday as markets waited for more details on the negotiations.
Lower energy prices reduce the risk of a prolonged inflation spike. That in turn pulls down US Treasury yields and weakens the dollar, both of which support gold prices.
Gold is priced in dollars, so a weaker dollar makes it cheaper for foreign buyers. Gold also doesn’t pay interest, so lower yields make it more attractive compared to bonds.
“The potential easing in energy prices gives the Fed more room to cut rates, which is positive for gold,” analysts at ING said in a note.
The US Dollar Index edged down 0.1% in Asian trading Thursday, hovering near pre-war levels.
Gold had fallen 11% since the US-Iran conflict began in late February. The closure of the Strait of Hormuz had sent energy prices higher and raised fears that inflation would stay elevated, keeping interest rates higher for longer.
Not everyone is optimistic. Chicago Fed President Austan Goolsbee and St. Louis Fed President Alberto Musalem both flagged that inflation remains above the Fed’s 2% target.
TD Securities strategists warned that peace deal headlines are “extremely fragile to reversal” since US and Iranian demands appear largely unchanged from earlier proposals.
Silver rose 1.9% to $78.79 an ounce on Thursday, after surging 6.2% on Wednesday. Platinum edged up slightly, while copper was largely flat.
Investors are now focused on Friday’s US non-farm payrolls report. The data could offer more clarity on whether the Federal Reserve will cut interest rates later this year.
Spot gold was at $4,701.96 an ounce as of 1:59 p.m. Singapore time on Thursday.
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