Global Gold Prices Rise as US-Iran Ceasefire Extension Awaits Trump Approval

Global gold prices rose more than 1% by the end of Thursday’s trading (28 May 2026 local time) or early Friday (29 May 2026 WIB), after previously touching a two-month low. The rise came after the US dollar and oil prices weakened following reports that the United States and Iran had reached a ceasefire extension agreement. Citing Reuters, spot gold rose 1.1% to $4,504.07 per ounce, after falling to its lowest level since late March 2026 the previous day. Meanwhile, US gold futures rose 1.1% to $4,532.40 per ounce. The US and Iran are reported to have reached a memorandum of understanding for a 60-day ceasefire extension, though the agreement still awaits approval from US President Donald Trump. The US dollar index fell 0.2%, making gold cheaper for holders of other currencies and boosting investor interest in the precious metal. Brent crude oil prices also weakened following the report. The monthly PCE index rose 0.4% after jumping 0.7% in March. Independent metals trader Tai Wong said that weaker inflation data and the potential reopening of the Strait of Hormuz provided positive sentiment for gold. “The trading gods seem to have intervened in today’s gold movement. First the weak PCE data, then reports of a potential Hormuz reopening, providing much-needed relief for gold,” Wong said. He added that gold had been under strong pressure and nearly breached the important 200-day moving average level tracked by market participants. “Gold was at risk of falling below the 200-day moving average this morning, which many traders and investors see as a critical test for maintaining the uptrend,” he said. However, the Federal Reserve’s minutes from its 28-29 April 2026 meeting, released last week, showed increasing openness among officials to further interest rate hikes. Gold prices have been under pressure since the US-Israel conflict against Iran erupted in late February 2026, amid rising global inflation concerns. Despite being a safe-haven asset, gold tends to lose appeal when interest rates rise as investors shift to higher-yielding assets. Among other precious metals, spot silver rose 1.3% to $75.60 per ounce. Platinum remained steady at $1,918.95 per ounce, while palladium fell 1.4% to $1,371.52 per ounce.