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Gold Prices Strengthen at the End of the Week, But Still Under Pressure Throughout May 2026

Global gold prices rose more than 1% in trading on Friday (May 29, 2026), driven by market optimism about the possibility of an extension of the ceasefire between the United States (US) and Iran.

However, this increase is not enough to lift gold performance throughout the month, which remains in a weakening trend due to inflation pressures and expectations of high interest rates in the US.

Quoting Reuters, spot gold prices rose 1.5% to US$ 4,556.84 per ounce at 1:49 PM New York time, after previously falling to a two-month low of US$ 4,365.76.

Meanwhile, US gold futures contracts for August delivery closed up 1.3% at US$ 4,593.

The rise in gold prices was triggered by reports that Washington and Tehran could agree to extend the ceasefire.

US President Donald Trump stated he would soon decide on the agreement, which includes reopening the Strait of Hormuz and halting Iran’s nuclear capabilities.

This geopolitical sentiment pushed the US dollar and oil prices lower, two factors that usually serve as positive catalysts for gold.

"Gold rebounded from an important technical support level, while hopes for an extension of the ceasefire pressured the dollar and oil, both of which support gold," said Phillip Streible, head of market strategy at Blue Line Futures.

The dollar index is on track for a weekly decline, making dollar-priced gold cheaper for global buyers. On the other hand, oil prices are also expected to weaken this week.

Nevertheless, the main pressure on gold still comes from the "higher for longer" interest rate expectations, which suggest that high rates will persist longer.

Recent data shows US inflation in April rose to its highest level in three years, driven by a surge in energy prices due to the Iran conflict, reinforcing the belief that the Federal Reserve will not cut interest rates in the near future.

High interest rates make non-yielding assets like gold less attractive to investors. Overall, spot gold prices are still down more than 1% throughout May.

On the physical demand side, the gold market in India remains sluggish due to high prices and import duties, while gold premiums in China—its largest consumer—narrowed due to cautious buying sentiment.

Meanwhile, the movement of other precious metals tends to be mixed. Silver prices remained stable at US$75.62 per ounce and are expected to record a monthly increase. Platinum fell slightly by 0.3% to US$1,917.65, while palladium weakened 1.1% to US$1,352.24 and plummeted more than 11% this month.