Gold on track for weekly gain
- By Reuters -
- May 08, 2026
Gold rose on Friday and was headed for a weekly gain on easing fears of inflation and higher interest rates, as investors remained optimistic about a US-Iran peace deal despite renewed hostilities.
Spot gold was up 0.7% at $4,715.49 per ounce, as of 0407 GMT. Bullion has gained 2.2% so far this week.
US gold futures for June delivery rose 0.3% to $4,725.
The United States and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the US said it did not want to escalate.
“The comments that we’ve had from the Trump administration this morning that the ceasefire is holding and that there’s still lingering optimism that a deal will get done between the US and Iran – that’s kind of supporting the gold market for now,” said Kyle Rodda, a senior financial market analyst at Capital.com.
Gold prices have fallen more than 10% since the war began in late February, pressured by higher oil prices. Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset.
“We just wait for the next headline about whether the US and Iran are getting close to agreeing on something. I think that there could be some choppy price action in the next 24 hours going into the end of the week,” Rodda said.
Markets now await the monthly US employment report due later in the day to assess how the Federal Reserve will move forward with monetary policy this year.
Nonfarm payrolls likely increased by 62,000 last month after rebounding by 178,000 in March, a Reuters survey of economists predicted.