US-Iran talks expected to heat up, gold weekly rebound exceeds 2%, institutions remain bullish on long-term trend

BlockBeats News, May 9 — As the Strait of Hormuz blockade has persisted for more than 70 days, market expectations of progress in US-Iran negotiations have been heating up, driving gold prices to rebound rapidly after falling below $4,500 per ounce. Spot gold reached a weekly high of $4,764.73 per ounce, up about 2.15% overall.

Despite a marginal easing of geopolitical tensions at the margin, global capital continues to flow into gold assets. According to data from the World Gold Council, in April global physical gold ETFs saw net inflows of $6.6 billion, ending the prior trend of outflows; gold ETFs in Asia have recorded net inflows for 8 consecutive months. Meanwhile, in April, China’s central bank continued to add 260,000 ounces of gold, marking the 18th consecutive month of net accumulation.

Multiple institutions believe the long-term support rationale for gold has not changed. Ray Dalio, founder of Bridgewater Associates, said that amid a cycle of global sovereign debt expansion and currency devaluation, gold remains an important tool for storing wealth. Goldman Sachs expects that by the end of 2026, gold prices may rise to $5,400 per ounce, while UBS expects it could approach $5,900 per ounce by year-end. Bank of America maintains a target price of $6,000 per ounce for the next 12 months.

Analysts noted that if the US-Iran conflict further cools down, near-term safe-haven demand may weaken, but with oil prices falling, stronger expectations for Federal Reserve easing, and continued gold purchases by central banks worldwide, gold may still receive medium- to long-term support.