Global Gold Prices Surge 2.3%, Driven by US Dollar Weakness
Global gold prices strengthened during trading on Wednesday (6/5/2026), driven by the weakening of the US dollar and positive progress in negotiations between the United States (US) and Iran.
Citing Bloomberg, the spot gold price surged up to 2.3% above the $4,660 per ounce level. This increase continued the 0.8% strengthening from the previous day’s trading.
The weakening of the US dollar was one of the main factors driving the rise in gold prices. The dollar index fell by around 0.5%, making gold cheaper for buyers using other currencies.
He also stated that he would temporarily halt US efforts to assist ships trapped in exiting the Strait of Hormuz to allow room for finalising the agreement.
From a policy perspective, US Secretary of Defense Pete Hegseth stated that the ceasefire, which has lasted nearly a month, is still holding.
Meanwhile, Secretary of State Marco Rubio emphasised that offensive operations have been halted, with the focus shifting to protecting shipping lanes in the region.
Nevertheless, tensions in the area have not fully subsided. Reports of a cargo ship being hit by an unidentified projectile following an incident in the Strait of Hormuz indicate that the situation remains vulnerable.
On the other hand, the unclear prospects of an agreement continue to shadow gold prices with short-term pressure. Rising inflation concerns are prompting expectations that the US central bank may raise interest rates again.
These expectations are reinforced by bond market participants increasing their bets on the possibility of rate hikes rather than cuts.
Since the conflict began at the end of February 2026, gold prices have fallen by more than 12%.
Market participants are now awaiting the release of US employment data. The data is expected to show stabilisation in the labour market, which could heighten investor focus on inflation risks.
Head of precious metals research and strategy at MKS PAMP SA, Nicky Shiels, described the current precious metals market as facing a “structural position paradox”.
According to him, gold investment values remain high, but positions in contracts and physical volumes are relatively light.
However, in the short term, a rise in gold prices requires additional support from institutional investors.
In the same trading session, silver prices rose 4.2% to $75.91 per ounce. Meanwhile, platinum and palladium also recorded gains.