Gold ​prices edged higher on Tuesday from a five-week ⁠low hit in the previous session, although gains were limited as elevated crude oil prices kept inflation fears alive and clouded the US ‌interest rate outlook.

Spot gold rose 0.3 per cent to $4,533.40 per ounce by 0417 GMT, after a more than ‌2 per cent drop on Monday. US gold futures for June ‌delivery ⁠inched 0.2 per cent higher to $4,542.50.

“Prices seem to be digesting ⁠a bit after the return of the ‘war trade’ across markets sent gold lower Monday,” said Ilya Spivak, head of global macro at Tastylive.

However, gains ​were capped as Treasury “yields ‌and the dollar pushed higher as a rebound in crude oil stoked inflation fears. That weighed against non-interest-bearing and anti-fiat gold,” Spivak said.

The dollar rose and Brent crude hovered ‌above $113 a barrel as the US and Iran continued to ​work towards a truce while trading blows over the Strait of Hormuz.

The US military said on ⁠Monday it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones as Tehran sought to thwart a new ‌US naval effort to open shipping through the Strait of Hormuz.

A stronger US currency makes dollar-priced metals more expensive for holders of other currencies.

Meanwhile, higher crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is considered an inflation hedge, high interest rates make yield-bearing ‌assets more attractive, weighing on its appeal.

Traders have largely priced out ​US interest rate cuts for this year, with markets now seeing a 37 per cent chance of a ⁠hike by March 2027, compared with 27 per cent of a reduction a ⁠week earlier.

Investors now await a slew of key US data this week, including job openings, the ADP ‌employment report, and the April payrolls report.

Spot silver was steady at $72.73 per ounce, platinum gained 1 per cent to $1,964, and palladium was ​up 0.8 per cent at $1,492.27. 

Published on May 5, 2026