Gold Jumps as Prospects of Iran Deal Temper Inflation Concerns

Gold prices rose on Monday, May 25, 2026, as indications of a potential deal between the United States and Iran emerged. The prospect of an agreement that could reopen the Strait of Hormuz appeared to temper broader inflation concerns.

Spot gold was up 1.5% at $4,575.30 an ounce at 8:11 a.m. in Singapore, according to Livemint. Bullion also rose to around $4,575 an ounce, recovering from a moderate loss experienced last week, Bloomberg reported.

Negotiations on the precise language of the deal were ongoing as of Sunday, May 24, 2026. U.S. officials informed reporters that it might take several days for both sides to secure final approval for an agreement.

U.S. Secretary of State Marco Rubio had previously indicated that there might be "some good news" regarding the Strait of Hormuz in the coming hours, as peace negotiations between Iran and Washington progressed, Livemint reported. However, President Donald Trump stated on social media that he would not "rush" into an agreement, according to Bloomberg.

The potential deal is anticipated to facilitate the reopening of the Strait of Hormuz, a key shipping route. Gold is often considered a hedge against inflation, and signs of a resolution that could ease inflationary pressures typically influence its price.

In broader market movements, the U.S. dollar weakened, and U.S. equity futures rallied, The Edge Markets reported. The ongoing negotiations suggest that the finalization of the agreement could still take several days.