Gold prices remain near one-week high amid weak dollar and US-Iran developments

7 May 2026 , 07:30 PM

Gold prices traded higher on Thursday 7th May 2026, staying close to a one-week high as investors closely monitored developments surrounding a possible peace agreement between the United States and Iran. A weaker US dollar and expectations around upcoming US economic data also supported bullion prices.

COMEX gold futures rose 1.05% to $4,743.80, gaining 49.50 points during the session. The commodity touched a high of $4,763.60 and a low of $4,694 during the day.

Spot gold remained steady near $4,688 per ounce after rising nearly 3% in the previous session, marking its strongest level since April 27. Meanwhile, US gold futures for June delivery edged higher to around $4,696 per ounce.

On the domestic front, gold prices also remained firm in the Indian commodity market. MCX Gold index traded higher by 0.69% at ₹38,515.55 during the session, reflecting continued strength in bullion prices.

Gold prices also received support from a weaker US dollar and softer crude oil prices. Lower oil prices eased some inflation concerns, while weakness in the dollar made gold more attractive for holders of other currencies.

Investor sentiment remained cautious as markets awaited further clarity on a potential US-Iran peace agreement. Reports suggested that Iran is reviewing a US proposal aimed at formally ending the ongoing conflict. However, concerns remain over unresolved issues related to Iran’s nuclear program and the Strait of Hormuz.

Market participants are now focusing on the upcoming US non-farm payrolls report, which is expected to provide insights into the strength of the US economy and the Federal Reserve’s future interest rate stance. Expectations of possible rate cuts generally support non-yielding assets such as gold.

Federal Reserve officials also highlighted concerns that ongoing geopolitical tensions could increase inflationary pressures through supply chain disruptions and elevated energy prices.

The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a slight decline in holdings to 942.50 metric tons as of Tuesday.