AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

5/7/2026: Gold gains for third session

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained for a third straight session, adding another 0.4% to close at just under $4,700, as oil fell further on hopes that a lasting peace between the US and Iran may reduce inflationary pressures and nudge the Fed into rate cuts this year. Silver rose 3.8% to finish at $79.70 an ounce.

The US and Iran appear to be on the verge of a temporary, limited truce that would end hostilities and reopen the Strait of Hormuz while leaving the most difficult issues, like Iran's nuclear ambitions, unresolved.

Oil prices tumbled for a second day on the peace-plan hopes, with global benchmark Brent crude falling 4.6% to $96.62 a barrel after dropping nearly 8% on Wednesday.

Under normal circumstances, gold typically trades in sympathy with oil as a hedge against energy-related inflation. But the US war on Iran has inverted that correlation. The extreme energy shock resulting from curtailed oil supply has sharply increased inflation expectations.

The New York Fed reported yesterday that supply-chain pressures created by the Iran war are the worst since 2022, when Covid's impact on supply chains drove inflation over 9%.

As a result, the Fed may be forced to leave interest rates steady or even increase them to control prices. A non-yielding asset, gold suffers when interest rates and bond yields rise, increasing the opportunity cost for holding it instead of bonds for safety.

Tomorrow's release of the government's nonfarm payrolls report should give further clues to the strength of the economy and direction of interest rates.

Platinum was nearly flat while palladium lost 2.4%.

At the New York spot close: gold gained $17.90 to $4,699.80; silver rose $2.89 to $79.70; platinum inched down 60 cents to $2,048.10; and palladium dropped $37.70 to $1,503.55 an ounce.