World Gold Prices Rise as Investors Monitor US–Iran Negotiations

World gold prices rose about 1% at the close of trading on Wednesday (20 May 2026) local time, or Thursday (21 May 2026) morning Western Indonesian Time (WIB). The gain followed a retreat in US Treasury yields and in crude oil prices amid hopes of a resolution to tensions in the Middle East. Reuters reported that spot gold rose 1.1% to $4,531.99 per ounce. Although the metal was firmer, it briefly touched its lowest level in more than seven weeks at the start of the session. David Meger, director of metals trading at High Ridge Futures, said gold was buoyed by a pause in the rise of US Treasury yields. ‘We are seeing a lull in the ongoing rise in yields, which has allowed gold to rebound from its recent lows,’ Meger said. The 10-year US Treasury yield edged slightly lower after yesterday’s high, the highest since January 2025. A rise in yields generally increases the opportunity cost of holding gold because the precious metal yields no income. According to Meger, the prospect of easing tensions in the Middle East also supported gold as it was expected to curb the trend of higher rates. ‘Any form of war settlement or the reopening of the Strait of Hormuz would be positive for the gold market because expectations for lower interest rates would help gold,’ he said. Brent crude oil prices weakened after US President Donald Trump again said the war with Iran would end ‘very quickly’. Nevertheless, market participants remained cautious about the outcomes of peace talks as supply disruptions in the Middle East continued. The minutes of the Federal Reserve’s April meeting showed officials warned that a US-Iran confrontation could trigger inflation and strengthen the case for rate hikes if inflation remained above the 2% target. Although gold is known as a hedge against inflation, it tends to be less attractive in a high-rate environment. According to the CME FedWatch Tool, traders are pricing in a 48.6% chance of the Federal Reserve raising rates in December. The odds of rates staying on hold at the June meeting stood at 89.6%. Other precious metals also rose. Silver spot jumped 3.1% to $76.06 per ounce; platinum rose 1.6% to $1,952.30 per ounce, and palladium gained 1.5% to $1,373.62 per ounce.