Gold prices in the international market have risen sharply again within two days, driven by expectations of a possible peace agreement between the United States and Iran, alongside hopes of lower interest rates in the United States.
According to a Reuters report published on Friday, 8 May, spot gold prices increased by 0.85 per cent to reach 4,709.60 US dollars per ounce. The metal has recorded an overall weekly gain of around 2 per cent.
US gold futures for June delivery also rose by 0.1 per cent, reaching 4,716.50 dollars per ounce.
The increase comes despite renewed military exchanges between the United States and Iran on Thursday, when both sides reportedly fired upon one another, violating a month-long ceasefire. However, Tehran later stated that efforts were being made to restore normal conditions, while Washington indicated that it was unwilling to escalate tensions further.
Market analysts said positive remarks from the Trump administration and growing investor optimism surrounding the possibility of a peace agreement have contributed to strengthening the gold market.
Gold prices had previously declined by nearly 10 per cent after conflict began in late February. During that period, rising oil prices intensified concerns over inflation, leading investors to anticipate higher interest rates. Such expectations generally reduce the appeal of non-yielding assets such as gold.
Investors are now closely monitoring the upcoming US employment report, which is expected to influence the Federal Reserve’s next monetary policy decision. Market participants believe that weaker economic indicators could support the case for interest rate reductions, which typically benefit gold prices.
Other precious metals also recorded gains in Friday’s trading session. Silver prices rose by 1.5 per cent to 79.68 dollars per ounce. Platinum increased by 1.2 per cent, while palladium gained 1.4 per cent.
Analysts noted that expectations of greater geopolitical stability and easing economic uncertainty have supported broader demand for precious metals in recent trading sessions.
Earlier in the week, on Wednesday, 6 May, gold prices had already climbed more than 2 per cent following a decline in the US dollar and renewed hopes for peace discussions in the Middle East. Reuters data showed that spot gold prices reached 4,647.09 dollars per ounce on that day.
International Precious Metals Prices
| Metal | Latest Price (Per Ounce) | Daily Change |
|---|---|---|
| Spot Gold | $4,709.60 | +0.85% |
| US Gold Futures (June) | $4,716.50 | +0.1% |
| Silver | $79.68 | +1.5% |
| Platinum | Not specified | +1.2% |
| Palladium | Not specified | +1.4% |
The latest gains reflect continued investor attention on geopolitical developments, inflation expectations, and future US monetary policy decisions, all of which remain key drivers of movements in global precious metals markets.