Gold Rises as Iran Ceasefire Holds
Gold prices climbed on Friday (May 8) and remained on track for a weekly gain, supported by a weaker U.S. dollar after traders scaled back expectations for further interest rate hikes following a solid April jobs report. Sentiment was also lifted after President Donald Trump reaffirmed that the ceasefire between the United States and Iran remains in effect despite recent clashes in the Strait of Hormuz.
In afternoon trading in New York, spot gold rose 0.7% to $4,717.91 per ounce, while gold futures gained 0.4% to $4,727.11 per ounce. On a weekly basis, spot gold has advanced more than 2% after rebounding from a one-month low earlier in May.
Markets continue to monitor developments in the Middle East, particularly around the Strait of Hormuz — a strategic waterway through which roughly one-fifth of the world’s oil and gas supplies pass. The route has been effectively closed since the conflict erupted in late February, triggering the largest energy supply disruption in modern history.
Earlier this week, the United States launched and then paused “Project Freedom,” an operation aimed at helping commercial vessels safely transit the strait. Meanwhile, U.S. forces have maintained a naval blockade of Iran’s ports and coastline since mid-April as part of ongoing pressure on Tehran.
On Friday, U.S. Central Command said it had fired upon and disabled two empty Iranian-flagged oil tankers attempting to enter an Iranian port in the Gulf of Oman. The U.S. military had also previously claimed it intercepted Iranian attacks on three American warships transiting the Strait of Hormuz. U.S. media reported that Washington retaliated by striking targets at Qeshm port and in the city of Bandar Abbas.
The renewed tensions come as Iran stated it is still reviewing a one-page, 14-point peace proposal that could potentially end the conflict and has yet to reach a final decision. Trump described the latest attacks as “just a love tap,” reiterating that the ceasefire remains intact, while warning that the U.S. would respond with far greater force if a deal is not signed swiftly.
Gold’s movement reflects the balance between rising geopolitical risks and shifting monetary policy expectations, with investors remaining cautious amid ongoing uncertainty in the Gulf region.
Source : Newsmaker.id
