Global Gold Prices Dip Slightly, US-Iran Tensions Loom Over Market

Global gold prices closed slightly weaker at the end of trading on Friday (2 May 2026), marking the second consecutive weekly decline. This movement occurred amid uncertainty in negotiations between the United States (US) and Iran, which have yet to find clarity. Citing Bloomberg on Saturday (2 May 2026), the spot gold price fell 0.1 per cent to US$4,614.21 per ounce. Throughout the week, the precious metal tended to fluctuate before ultimately correcting lower. US President Donald Trump expressed dissatisfaction with the course of negotiations with Iran. However, he has not signalled any new military steps in the conflict, which has lasted about nine weeks and disrupted global energy flows. On the other hand, Iran is said to have submitted a new proposal to the United States via Pakistan, which previously mediated direct talks. Nevertheless, there is no certainty whether Trump’s statement relates to that proposal. The closure of the Strait of Hormuz and a surge in energy prices have become key factors reducing the chances of interest rate cuts, while also pressuring gold’s attractiveness. From a currency perspective, the strengthening US dollar also burdened gold prices. A stronger dollar makes the precious metal more expensive for global investors. Nevertheless, the medium-term outlook for gold is still considered positive. Data from the World Gold Council shows that central banks increased gold reserves in the first quarter at the fastest rate in more than a year. Head of metals research at JPMorgan Chase & Co., Greg Shearer, stated that the short-term direction for gold remains unstrong, although the medium-term bullish trend remains the consensus. If tensions in the Middle East ease and expectations for interest rates and the US dollar decline, opportunities for gold to rise will reopen. In other metals markets, silver prices rose 2.2 per cent to US$75.36 per ounce, continuing the previous day’s gains. Platinum strengthened slightly, while palladium weakened. Meanwhile, the Bloomberg Dollar Spot Index rose 0.1 per cent after previously weakening.