Gold vs Silver Begins to "Part Ways", Here's the Next Price Prediction
Gold and silver prices have flattened following reports that Tehran will not permit the reopening of the Strait of Hormuz.
Gold prices temporarily strengthened intraday, supported by signals of a peace agreement between the United States and Iran. This situation has eased concerns regarding inflation and persistently high interest rates.
According to Refinitiv, gold prices closed at US$4,685.18 per troy ounce on Thursday (7/5/2026), down 0.09%.
Gold prices improved today. On Friday (8/5/2026) at 06:36 WIB, the price rose 0.21% to US$4,695 per troy ounce.
“If the ceasefire holds, this war could be left behind, and business activity could return to normal with the Strait of Hormuz open. I can see gold prices breaking through US$5,000 per ounce,” said Bob Haberkorn, senior market strategist at RJO Futures, quoted from Refinitiv.
“The market is currently just monitoring the situation in the Middle East, as well as the direction of US Federal Reserve interest rate policy,” he added.
The US and Iran are reportedly drawing closer to a temporary agreement to halt the war, according to several sources and related officials. Tehran is currently reviewing a proposal that would stop the fighting but has not resolved the most sensitive issues.
Oil prices have temporarily reversed upwards. A senior Iranian official stated that Iran will not allow the US to reopen the Strait of Hormuz with unrealistic plans.
Rising energy costs typically trigger inflation.
In such situations, policymakers tend to be reluctant to cut interest rates to control price pressures.
Although gold is known as a hedge against inflation, the precious metal becomes less attractive in a high-interest-rate environment because it offers no yield.
TD Securities in its note stated that gold prices still have the potential to rise above US$5,200 per ounce after the conflict and inflationary pressures from the oil price surge begin to subside.
“A change in the direction of The Fed’s policy that is more focused on the labour market, a decline in bond yields, and a weakening of the US dollar, combined with renewed increases in demand from investors and central banks, could reignite the bullish trend in gold,” wrote TD Securities.
The market is now awaiting the release of the US monthly employment report on Friday to assess the direction of The Fed’s monetary policy this year.
Data also shows that the People’s Bank of China has added to its gold reserves for the 18th consecutive month in April.