Gold gains on softer dollar, falling oil

May 06, 2026 (MLN): Gold prices climbed on Wednesday, supported by a weaker U.S. dollar, while declining crude oil prices helped ease concerns about inflation and the prospect of prolonged high interest rates.

Hopes of a potential U.S.-Iran peace agreement also boosted market sentiment.

Currently, spot gold is up at $4,651.49 an ounce as of [10:08 am] PST, according to data reported by Mettis Global.

The U.S. dollar and oil prices slipped after President Donald Trump suggested on Tuesday that progress was being made toward a comprehensive agreement with Iran, potentially reducing tensions in the Strait of Hormuz and pausing related naval operations.

A weaker dollar generally supports gold by making it cheaper for international buyers.

At the same time, falling oil prices reduce inflation pressures, lowering expectations for further interest rate hikes.

Although gold is often seen as a hedge against inflation, higher interest rates tend to reduce its attractiveness compared to interest-bearing assets, according to CNBC.

Investors are now focusing on the upcoming U.S. non-farm payrolls report, which will provide clues about the strength of the labor market and whether the Federal Reserve is likely to maintain its current policy stance or consider rate cuts if economic conditions soften.

Other precious metals also gained, with silver rising 2.7% to $74.80 per ounce, platinum up 1.7% at $1,986.25, and palladium increasing 2.1% to $1,516.44.

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