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Gold Prices Rebound After Trump Says Iran Negotiations Enter Final Stage

Global gold prices strengthened again in trading on Thursday (21/5/2026) after having previously touched the lowest level in the past two months. The rise was driven by easing market concerns about conflicts in the Middle East as well as falling global inflation pressures.

As recorded, spot gold prices briefly rose 1.39% to US$ 4,543.55 per troy ounce after the previous day’s fall to the US$ 4,490 per troy ounce area.

Market sentiment began to improve after U.S. President Donald Trump said negotiations with Iran had entered the final stage. However, Trump also warned of the possibility of additional attacks if Iran did not agree to the peace deal.

Research & Development Trijaya Pratama Futures’ Alwi Assegaf said the increase in gold prices also occurred alongside weakening yields on U.S. government bonds.

The 10-year Treasury yield fell to 4.576% from the previous level of 4.669%.

“Falling yields give gold room to rebound after heavy pressure in recent sessions,” Alwi said in his research on Thursday (21/5/2026).

According to Alwi, the market is starting to scale back concerns about a surge in inflation after signs emerged that geopolitical tensions in the Middle East are easing.

In addition to developments in U.S.-Iran negotiations, shipping data showed that several Chinese supertankers and oil tankers have started to leave the Strait of Hormuz. This led to a decline in global crude oil prices and helped ease concerns about disruptions to the world’s energy supply.

Even though market sentiment has begun to improve, the minutes of the April 2026 Federal Open Market Committee (FOMC) meeting showed that most Federal Reserve officials are still keeping open the possibility of interest rate hikes this year.

In the minutes, most Fed officials assessed that monetary policy tightening may still be necessary if inflation remains above the 2% target. Even so, some members wanted to remove statements that previously signaled a bias toward easing policy.

Research & Development ICDX’s Tiffani Safinia said the market is now watching a number of additional U.S. economic data, including manufacturing PMI and weekly unemployment claims data, to assess the resilience of the U.S. economy amid inflation pressures.

“The movements of the U.S. dollar and energy prices are expected to remain the main factors affecting the direction of gold in the short term,” Tiffani said.

Tiffani believes that medium- to long-term investors can still apply a strategy of gradual accumulation because gold remains an instrument for hedging against inflation and global uncertainty.

Technically, Alwi sees that gold price movements on the H4 time frame are still under bearish pressure, even though they are starting to show signs of a short-term rebound after holding above the 4.453 support level.

Gold prices are still moving below the downtrendline and the moving average area, so the downtrend is still considered dominant. However, the Relative Strength Index (RSI) indicator is beginning to rise from the oversold area, indicating that the momentum behind the weakening is starting to diminish.

If the price is able to break through resistance in the 4.589 to 4.637 range, the opportunity for strengthening toward the 4.773 area will become even more open. Conversely, if the price fails to break resistance and falls back below 4.511, selling pressure could continue toward the 4.453 to 4.404 support.