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2026.06.0500:04:54UTC+00Gold Steadies on Middle East Peace Hopes

Gold held steady above $4,450 an ounce on Friday, consolidating gains from the previous session amid lingering hopes that the US and Iran could still reach a diplomatic agreement to end the conflict and reopen the Strait of Hormuz. President Donald Trump said peace talks were nearing their final phase and is reportedly reluctant to return to full-scale war with Iran despite recent tensions.

However, Iranian Deputy Foreign Minister Abbas Araghchi stated that there has been no meaningful progress in the negotiations. In addition, Iran-backed Hezbollah rejected a US-brokered ceasefire proposal between Israel and Lebanon, casting further doubt on Trump’s efforts to resolve regional hostilities.

Even with this recent support, gold remains on track for a weekly loss. The protracted conflict and ongoing disruptions to energy shipments through the Strait of Hormuz have kept oil prices elevated, stoking inflation concerns and reinforcing expectations of higher interest rates.

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