Global Gold Prices Rise, Interest Rate Prospects in the Spotlight

NEW YORK - Global gold prices strengthened at the close of trading on Tuesday (5 May 2026) local time, or Wednesday (6 May 2026) morning WIB, after touching the lowest level in more than a month.

Citing Reuters, the spot gold price rose 0.8 per cent to $4,557.56 per ounce, after hitting the lowest level since 31 March 2026 the previous day.

Meanwhile, US gold futures strengthened 0.8 per cent to $4,568.50 per ounce.

Gold had weakened earlier, driven by market attention on the still-heating geopolitical situation in the Middle East and prospects for US central bank interest rates.

“We see some buying action after the recent selling, and the decline in oil prices also provides support. The market will continue to monitor news developments, but focus could shift slightly to economic data,” said Wyckoff.

He added that gold market participants still need stronger fundamental sentiment for the price rally to continue.

The market is now closely watching the situation in the Middle East after the United Arab Emirates (UAE) stated that its territory was attacked by Iranian missiles and drones.

On the other hand, the US government stated that the ceasefire is still in place despite gunfire occurring the previous day as US forces attempted to reopen the Strait of Hormuz shipping route.

The Strait of Hormuz is a vital global trade route for oil supplies, fertiliser, and various world commodities.

That route has been nearly closed since the attacks began on 28 February, triggering a surge in global commodity prices.

Oil prices did fall on Tuesday’s trading, but the decline was limited.

The persistently high energy price conditions are seen as risking inflation and delaying the central bank’s interest rate easing cycle.

Gold has long been known as a hedge asset (safe haven) against inflation and global uncertainty.

However, rising interest rates tend to reduce gold’s attractiveness because the precious metal does not provide a yield.