Gold keeps stable footing above $4,500

May 19, 2026 (MLN): Gold prices remained stable on Tuesday, as investors took a cautious wait-and-see stance following a dramatic shift in U.S. foreign policy toward Iran.

Currently, spot gold is slightly up 0.20% to $4,548.19 an ounce as of [12:16 PM] PST, according to data reported by Mettis Global.

Markets entered a consolidation phase after President Donald Trump announced he had paused a planned military strike against Iran, opting instead to pursue diplomatic negotiations.

The move came after Tehran submitted a revised peace proposal to Washington, signaling a potential opening for a deal to end the U.S.-Israeli conflict, according to Reuters.

Bond markets steadied following a sharp selloff, as traders reassessed the geopolitical landscape.

Oil prices bore the brunt of the optimism, tumbling more than 2% as the prospect of eased tensions reduced supply-disruption fears.

The decline offered some relief on the inflation front, a factor closely watched by gold investors, since the precious metal is traditionally seen as a hedge against rising prices. However, any resulting expectations of higher interest rates could limit gold's upside, given that the non-yielding asset becomes less attractive in a high-rate environment.

Other precious metals also came under pressure. Spot silver slid 2% to $76.09 per ounce, platinum edged down 0.7% to $1,965.40, and palladium fell 1.5% to $11,397.50.

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