Published Wed, May 27, 2026 · 09:31 AM
GOLD held a loss, as fresh clashes in the Persian Gulf weighed on hopes for a US-Iran peace deal and reinforced concerns that inflation could keep interest rates higher for longer.
Bullion was near US$4,510 an ounce in early trading, having fallen 1.4 per cent on Tuesday (May 26). Hostilities between US and Iranian forces near the Strait of Hormuz occurred even as both sides touted progress toward an interim peace deal, with US Secretary of State Marco Rubio saying that any pact would likely take a few days to finalize.
Despite the impasse, confidence was growing that the three-month conflict will remain contained, with traders seizing on signs of diplomatic progress even as attacks continued. The risk-on mood has lifted equities to fresh highs.
“While hope of a US-Iran deal has offered some support, the situation remains fragile and persistent, as inflation fears continue to loom over precious metals,” TD Securities analyst Ryan McKay said in a note. “Ultimately the pricing asymmetry remains heavily skewed to the downside across the board.”
Bullion has slumped around 15 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 gold, which doesn’t pay interest.
Spot gold edged up 0.1 per cent to US$4,514.48 an ounce as of 7.37 am in Singapore. Silver gained 0.5 per cent to US$77.25. Platinum and palladium also rose. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed after ending the previous session 0.1 per cent higher. BLOOMBERG
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