Gold and Silver Prices Fall in Tandem as US-Iran Peace Hopes Weigh
Jakarta, CNBC Indonesia - Global gold prices fell again as market concerns over a potential US-Iran war eased.
According to Refinitiv, gold closed at US$4,457.03 per troy ounce on Wednesday (27 May 2026), down 1.09%. This follows a 1.4% drop the previous day.
Spot gold continued to decline Thursday morning (28 May 2026, 06:26 WIB) at US$4,451.88 per troy ounce, down 0.12%.
The pressure on gold persisted despite a weaker US dollar and lower oil prices, indicating investors remain hesitant to return to gold as geopolitical tensions ease slightly.
Diplomatic talks between the US and Iran continue, though Tehran previously accused Washington of serious ceasefire violations. The accusations followed recent US defensive strikes targeting missile sites and vessels near the Strait of Hormuz earlier this week.
However, Iranian Revolutionary Guard officials stated on Wednesday that a new war with the US is unlikely, while Iran affirmed readiness to respond if attacked again.
This statement helped ease market fears of further escalation in the Middle East, with hopes that a US-Iran deal could reopen the Strait of Hormuz.
Meanwhile, gold struggles to gain strength as markets view oil-driven inflation risks as a greater near-term threat.
Persistent high energy prices are likely to maintain global inflationary pressures, prompting major central banks, including the Federal Reserve (Fed), to keep tight monetary policies longer.
As a non-yielding asset, gold becomes less attractive when interest rates and bond yields are high, adding to negative sentiment.
The US economy continues to show robust growth, with inflation yet to fall convincingly, reinforcing expectations that the Fed will not rush to cut rates.
Even if a US-Iran peace deal is reached and the Strait of Hormuz reopens, oil shipment normalisation is unlikely to happen immediately. Shipping recovery could take months, keeping oil prices elevated and inflation concerns persistent.
With markets factoring in the Fed’s hawkish stance, gold prices are likely to remain under downward pressure in the short term.
Investors are now awaiting the release of the US Personal Consumption Expenditures (PCE) inflation data on Thursday local time, which will provide key insights into future inflation trends and Fed rate policy.