Gold Holds Firm Above $4,500 as US-Iran Peace Hopes Rise and Soft US Data Supports

Gold prices held above the $4,500 per ounce threshold on Friday, May 29, 2026, supported by renewed hopes of a U.S.-Iran peace deal and weaker U.S. economic data that reinforced expectations for Federal Reserve rate cuts. Spot gold rose 0.3% to $4,520.30 an ounce, staying close to record highs set earlier in the week. U.S. consumer spending unexpectedly fell 0.2% in April, while a key inflation gauge watched by the Fed decelerated to 2.4% annually, the Commerce Department reported. The soft data fueled a decline in Treasury yields and the dollar, making the non-yielding metal more attractive. Analysts said the numbers strengthen the case for the Fed to begin cutting interest rates as soon as July. Separately, diplomatic overtures between Washington and Tehran raised prospects for reviving nuclear talks, which could ease geopolitical tensions in the Middle East. While that typically weakens gold’s safe-haven appeal, the metal’s rally persisted as investors focused on the deteriorating U.S. economic picture. “Gold is in a win-win scenario—slower growth brings rate cuts, and any geopolitical détente only removes one risk, not the macro one,” said one strategist.