Gold prices held steady on Thursday, May 21. Spot gold traded around $4,535 per ounce.
President Donald Trump announced that negotiations with Iran have reached the final stages of a potential peace agreement. This optimism creates a headwind for the precious metal by easing fears of prolonged conflict and energy-driven inflation.
De-escalation and the potential reopening of the Strait of Hormuz are tempering expectations for a higher-for-longer interest rate policy. Markets are currently balancing hopes for peace against hawkish signals from recent Federal Reserve meeting minutes.