Published Tue, May 26, 2026 · 09:05 AM
[SINGAPORE] Gold held gains on signs the US and Iran were making progress on reaching a deal to reopen the Strait of Hormuz and restore oil flows, easing inflation fears.
Bullion was trading around US$4,575 an ounce, after rising 1.4 per cent the day before. US President Donald Trump said on Monday (May 25) that talks with Iran over an interim deal to extend their ceasefire and ease restrictions on passage through the crucial waterway were “proceeding nicely”.
Traders are also monitoring for strikes that may derail talks, as Iran has demanded the cessation of hostilities in Lebanon be part of any peace agreement. Local media has reported explosions in the Strait of Hormuz, along a Teheran-approved transit route used by vessels crossing the waterway. Separately, Israel said that it will intensify strikes against Hezbollah while the US-Iran talks are ongoing.
Bullion has slumped around 13 per cent since the conflict erupted in late February. Traders ramped up rate-hike bets as the war sent energy prices soaring and fanned inflation concerns. Higher borrowing costs weigh on bullion, which does not pay interest.
Spot gold was up 0.1 per cent at US$4,574.88 an ounce at 7.23 am in Singapore. Silver was 0.2 per cent higher at US$78.19. Platinum and palladium were little changed. The Bloomberg Dollar Spot Index, a gauge of the US currency, was stable after retreating 0.3 per cent the day before. BLOOMBERG
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