Global Gold Prices Reverse Course and Rise, Market Monitors US-Iran Conflict and US Inflation Data

JAKARTA - Global gold prices reversed course and strengthened at the end of trading on Monday (11 May 2026) local time, or Tuesday (12 May 2026) morning Western Indonesia Time, as investors monitored developments in US-Iran diplomacy and awaited the release of US inflation data.

Citing Reuters, spot gold rose 0.2% to $4,723.40 per ounce, after having fallen more than 1% in early trading. Meanwhile, US gold futures closed relatively stable at $4,728.70 per ounce.

Jim Wyckoff, a market analyst at the American Gold Exchange, said the rise in gold prices was supported by buying activity during the dip and market anticipation of US inflation data.

“There was bargain hunting action and position adjustments ahead of the US inflation data release this week,” he said.

Market focus is now on the US Consumer Price Index (CPI) data scheduled for release on Tuesday, followed by the Producer Price Index (PPI) on Wednesday.

That situation also drove up global oil prices and increased global inflation risks. ING analysts in their note stated that the failure of peace negotiations keeps market uncertainty high.

“This setback makes the ceasefire schedule uncertain and keeps inflation risks high, reinforcing the view that interest rates will remain high for longer, which during this conflict weighs on gold,” the ING analysts wrote.

Nevertheless, ING still forecasts that gold prices could rise to $5,000 per ounce by the end of the year, although the stalled peace talks add short-term uncertainty.

Several global brokerage firms have also begun to cut expectations for US interest rate cuts this year. Market projections are now split between limited monetary easing or no rate cuts at all in 2026.

In addition, the market is monitoring Trump’s two-day visit to China this week to meet Chinese President Xi Jinping. The meeting is scheduled to discuss Iran, Taiwan, artificial intelligence, and nuclear weapons.

Meanwhile, other precious metal prices also strengthened. Spot silver surged 6.6% to $85.65 per ounce, platinum rose 3% to $2,116.72 per ounce, and palladium increased 0.8% to $1,503.11 per ounce.