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07.05.202608:51 Forex Analysis & Reviews: Why Gold Has Returned to Growth

Relevance up to 02:00 2026-05-08 UTC--4

The price of gold has returned to growth after a significant correction, as traders welcomed news of an agreement between the US and Iran to end the war, which has partially reduced inflationary risks.

Exchange Rates 07.05.2026 analysis

The renewed interest in gold indicates that investors are not in a hurry to completely abandon its protective qualities. Long-term inflationary factors, such as issues in the energy markets and the volumes of fiscal and monetary stimuli, remain in place, supporting interest in gold as a store of value.

Overall, the situation in the gold market reflects the duality of investor sentiment. On one hand, the desire to reduce risks and seek higher-yielding assets puts pressure on precious metal prices. On the other hand, persistent inflation expectations and potential volatility in the global economy continue to make gold attractive for those seeking a reliable refuge for their capital.

Today, the price of gold reached $4,741 per ounce, up 3% from Wednesday. The decline in energy prices has put pressure on bond yields, and the dollar has fallen to pre-war levels, positively impacting the price of gold, which is valued in US currency and does not yield interest.

Currently, Iran is considering a new US proposal to end the conflict that has lasted nearly 10 weeks. A response regarding the deal is expected within the next 24 hours. US President Donald Trump has repeatedly indicated throughout the conflict that a deal is close, although it has not materialized. On Wednesday, he stated on social media that the US would end its military campaign and lift the blockade of the Strait of Hormuz, provided that Iran agrees to comply with the reached agreements, which may be a considerable assumption. However, the main point of the agreement is Iran's renunciation of uranium enrichment, which Tehran has repeatedly rejected.

It is worth noting that since the beginning of the conflict at the end of February this year, the price of gold has fallen by about 11%, as the closure of the Strait of Hormuz and the subsequent shock in energy prices raised concerns about rising inflation and the likelihood that interest rates would remain high for an extended period.

Exchange Rates 07.05.2026 analysis

As for the current technical picture of gold, buyers need to overcome the nearest resistance at $4,771. This will allow them to target $4,835, above which it will be quite challenging to break through. The furthest target will be around $4,893. In the event of a decline in gold, bears will aim to gain control over $4,708. If this is achieved, breaking the range will deal a significant blow to bulls' positions and push gold down to a low of $4,656 with the potential to reach $4,607.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Miroslaw Bawulski,
Analytical expert of InstaSpot
© 2007-2026
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