Summary

• Gold rebounded on easing geopolitical tensions: Gold (XAU/USD) surged 3% as optimism over a potential US–Iran peace deal reduced stagflation fears and increased expectations that the Fed could eventually pivot toward rate cuts, weakening the US dollar.
• Technical and intermarket signals remain cautious: Despite the rally, gold remains one of the weaker-performing major assets since late February, while firm US 10-year real yields above 1.85% continue to limit upside momentum by raising the opportunity cost of holding non-yielding assets.
• Near-term bearish bias still intact: Gold’s rebound stalled near the downward-sloping 20-day and 50-day moving averages and close to the 61.8% Fibonacci retracement level, while RSI momentum indicators flashed bearish divergence, keeping resistance at 4,775 in focus.

By Kelvin Wong

Gold (XAUUSD:CUR) has staged a significant intraday rally of 3% on Wednesday, May 6, 2026, on the backdrop of easing US-Iran geopolitical tensions, as positive news flows suggest a potential imminent peace deal resolution to end the two-month-long conflict.

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