Gold Prices Go Nowhere, Traders Fed Up with Trump's Promises
Gold prices barely moved as oil prices weakened amid uncertainty over the resolution of the conflict involving the United States and Israel against Iran. A softer dollar and falling bond yields also supported bullion.
Refinitiv data showed that gold traded on Thursday, 21 May 2026, closing at US$4,544 per troy ounce, up a slim 0.01%. The rise extended its positive streak after a 1.4% gain on Wednesday.
Gold prices slipped slightly on Friday. By 06:45 WIB on 22 May 2026, gold was at US$4,532.89 per troy ounce, down 0.24%.
Oil prices moved volatile and down as prospects for resolving the conflict with Iran remained unclear. US President Donald Trump said earlier this week that he cancelled air strikes previously planned against Iran to allow more time for diplomacy, at the request of Gulf Arab allies. However, Iran and the US have seen only limited progress toward a deal since they agreed to a fragile ceasefire last month.
West Texas Intermediate (WTI) futures fell by almost 2% to close at US$96.35 per barrel. Brent crude also eased by more than 2% to US$102.58 per barrel.
Treasury yields on the 10-year and 30-year notes also fell, with the 10-year yielding 4.564% and the 30-year yield down more than 2 basis points to 5.09%.
Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, said the declines in oil prices and the dollar’s retreat from six-week highs should support gold in the near term. However, the market remains cautious given that previous deals have frequently fallen through.
“Lower oil prices and the dollar retreat from six-week highs should be positive for gold in the near term, and gold has begun to firm. Still, I expect trading to remain cautious at first. We have seen deals fail several times,” Grant said.
The precious metal had fallen more than 14% since the war began in late February. The conflict disrupted maritime traffic through the Strait of Hormuz, fueling energy price increases and raising inflation concerns.
“An oil price rise that pushes inflation higher puts central banks under pressure to keep rates high or raise them again. That environment remains negative for gold in the near term,” UBS analyst Giovanni Staunovo noted. Although gold is known as an inflation hedge, it typically faces pressure when rates are high.
Market participants now see a 58% chance that the Federal Reserve will raise rates by at least 25 basis points this year, up from 48% a day earlier, according to the CME FedWatch Tool.