World Gold Prices Rise as US-Iran Peace Hopes Ease Inflation Concerns

Gold prices surged in early Asian trading on Monday (25 May 2026), driven by growing hopes of a peace deal between the United States (US) and Iran. Market optimism over easing Middle East tensions also weighed on the US dollar and US Treasury bond yields, supporting stronger precious metal prices. According to Investing.com, spot gold rose 1.5% to $4,577.12 per ounce, while US futures prices climbed 1.2% to $4,612.24 per ounce. US President Donald Trump stated over the weekend that a framework for a peace deal with Iran had been largely negotiated. Media reports indicate the potential agreement includes an extension of the US-Iran ceasefire and the reopening of shipping routes in the Strait of Hormuz, which could help restore global oil supplies. However, Trump later signaled that the US is not in a rush to finalise the deal, with the US naval blockade against Iran remaining in place. Iranian officials are also reported to have rejected US demands to surrender enriched uranium reserves.