Gold Prices Surge Again, Breaking US$4,700 Level: Is the Dark Period Over?

Gold prices strengthened alongside optimism over the potential end to the Iran conflict and the weakening of the US dollar.

According to Refinitiv, gold prices closed at US$4,714.42 per troy ounce in the last trading session of the week on Friday (8/5/2026). The price rose by 0.62%.

This closing price is the highest since 22 April 2026, or more than two weeks ago.

Over the week, gold prices strengthened by 2.18%. This increase also ends the poor trend of weakening in the previous two weeks.

Gold, typically regarded as a safe-haven asset during global turmoil, tends to be pressured in a high-interest-rate environment because it offers no yield.

“Gold is trading more like a risky asset than a safe haven. The rebound in gold prices is linked to prospects of the Iran conflict easing. With falling energy prices, the chances of the Fed cutting interest rates ahead are greater,” said David Meger, director of metals trading at High Ridge Futures, quoted from Refinitiv.

The rise in gold is also supported by the weakening US dollar and oil prices.

The dollar index weakened to 97.9, a record low since early March 2026.

Oil prices and the US dollar index are expected to record weekly declines. The weakening US dollar makes gold, priced in dollars, cheaper for holders of other currencies.

Market participants are now awaiting the direction of US central bank policy, the Federal Reserve (the Fed), going forward.

Based on the CME FedWatch tool, the market now sees a 14% chance of a US interest rate hike this year, down from around 22% the previous day.

Fed Governor Stephen Miran hopes that Fed Chair Jerome Powell will only remain as governor briefly. Kevin Warsh is said to be in line to replace Powell as the Fed leader, awaiting a Senate vote.

Data shows that US employment increased higher than expected in April. Gold prices extended their gains after the data was released.