Gold Surges on US-Iran Peace Hopes and Cooling Inflation
Gold prices surged to a one-month high on August 5, 2026, reaching $4,269.20 per ounce after a gain of approximately 0.52%.
The rally was driven by rising hopes for a US-Iran peace deal that could reopen the Strait of Hormuz and ease tensions in the Middle East, historically linked to spikes in oil prices and inflationary pressures.
This geopolitical thaw reduced the risk premium embedded in gold, making it more attractive as a store of value amid shifting risk landscapes. Additionally, lower inflation expectations, reflected in declining US Treasury yields and a weaker US Dollar Index, further contributed to gold's upward momentum.
Central banks' steady accumulation of gold reserves, which increased by 51.1 tonnes in June 2026, provided a structural support to prices, underscoring the metal's enduring appeal as a reserve asset amid global economic uncertainties.