Gotrade News - Spot gold rose 0.2% to $4,723.40 per ounce on Monday as traders weighed escalating US-Iran tensions. The rebound followed two consecutive sessions of gains amid renewed safe-haven demand.
President Donald Trump rejected Iran's response to Washington's peace proposal, calling it "garbage". The deadlock extends a 10-week conflict that continues to threaten shipping lanes through the Strait of Hormuz.
Key Takeaways:
- Spot gold climbed 0.2% to $4,723.40 per ounce after a two-day cumulative gain of 1.37%.
- Trump labeled Iran's response "garbage" and the fragile ceasefire "very critical".
- Traders await US CPI data Tuesday and PPI Wednesday as key inflation signals.
Catalysts Behind the Rally
According to Liputan6, gold initially fell over 1% at the session open before reversing direction. Daniel Pavilonis of RJO Futures said the market is "very focused on the Strait of Hormuz, particularly on reopening".
Jim Wyckoff of American Gold Exchange cited bargain hunting and position adjustments before US inflation data this week. Wyckoff noted that traders are using the dip to accumulate ahead of key economic prints.
As reported by Kompas, silver surged 6.6% to $85.65 per ounce. Platinum gained 3% to $2,116.72 while palladium added 0.8% to $1,503.11 per ounce.
Investors seeking gold exposure can consider SPDR Gold Shares (GLD), the largest physical gold ETF on US exchanges. Miner-focused plays include VanEck Gold Miners (GDX) and Newmont (NEM).
Per Bloomberg Technoz, spot gold closed at $4,750.4 per troy ounce on May 11. The two-day cumulative gain reached 1.37% following sharp corrections earlier in the prior week.
Price volatility has remained elevated since the Middle East conflict erupted in late February 2026. Tensions intensified after reports of commercial shipping disruptions through the Strait of Hormuz in recent weeks.
Inflation and Rate Risks
ING analysts warned that failed negotiations increase ceasefire uncertainty and sustain elevated inflation risk. This supports the view that interest rates will persist longer, a headwind that typically burdens gold.
The US Consumer Price Index is scheduled for release on Tuesday, followed by the Producer Price Index on Wednesday. Both prints will inform market expectations for the Federal Reserve's next policy steps.
Despite near-term pressure, ING projects gold could reach $5,000 per ounce by year-end. Multiple brokerages have already reduced their expectations for US rate cuts in 2026.
Priyanka Sachdeva of Phillip Nova Pte Ltd said gold is consolidating between geopolitical tensions and rising inflation concerns. The combination creates directionless price action without a clear short-term catalyst.
Trump is scheduled for a two-day visit to China this week to meet President Xi Jinping. The agenda includes Iran, Taiwan, artificial intelligence, and nuclear weapons in a single sweep.
The outcome of the Trump-Xi meeting could directly shift global risk sentiment in the coming sessions. Gold traders will monitor official statements from both leaders as signals for the next phase of geopolitical tension.
Sources:
- Global Gold Prices Rise Amid US-Iran Tensions and Inflation Concerns (Kompas)
- Gold Price Stable as Traders Monitor Strait of Hormuz Deadlock (Bloomberg Technoz)
- Gold Rises Two Consecutive Days (Bloomberg Technoz)
- Gold Price Rebounds, Investors Accumulate Slowly (Liputan6)
