Gold Price and Market Rally Could Resume as U.S.-Iran Peace Talks Progress, Say Experts

Gold Investing Sees Revival Amid Hopes for Peace Deal

Gold bullion climbed on May 7, 2026. Reports spoke of a U.S.–Iran peace deal that ends a 69‑day conflict. Gold rose 1.2% to $4,750 per ounce, and silver advanced 3% to $79.62 per ounce. Volatility in early 2026 followed 2025’s steep rallies.

Gold Market Dynamics During the Conflict

The U.S.–Iran war began on February 28. Gold served as a safe asset then. Prices split from oil and the U.S. dollar. Oil and the dollar surged because energy supplies dropped. Rising rate hopes and traders taking profit caused a sell-off from 2025’s gains.

Ross Norman, CEO of Metals Daily, said gold was “significantly overbought” at war’s start. His view put a focus on profit taking as prices fell. Price drops also came as fears of higher inflation led banks to raise rates. Energy costs pushed this trend.

Safe-Haven Demand and Correlation with Equities

When stock values fell in March 2026, investors looked to gold for protection. Francis Tan from Indosuez Wealth Management said gold helped cushion equity losses. Philippe Gijsels, chief strategy officer at BNP Paribas Fortis, called the decline in precious metals a phase of adjustment driven by rate expectations. He noted that gold and silver moved close to equities, with inflation and rising rates pushing traders to sell.

Outlook: Secular Bull Market Intact as “Fog of War” Lifts

Market strategists expect gold and silver to gain when tension eases. Philippe Gijsels said the forces behind metal prices do not stop. He mentioned banks shifting from U.S. government debt, a trend of higher inflation, and a strong need for physical assets. A peace deal would reduce flows into the U.S. dollar and keep energy prices calm. New highs could come later in 2026 when investor focus returns.

Silver’s Supply Constraints and Industrial Demand Support Prices

Silver may move up and down more than gold, yet its basics stay strong. Paul Williams of Solomon Global said low physical supply and high demand for green tech and AI keep silver tight. Metals find use in solar panels and electronics. Williams said that if peace holds, a better economy could push silver prices up with rising industrial use. If peace talks slow, gold may gain first as a safe choice, and silver could follow because supply remains limited.

Summary

• Gold reached $4,750 per ounce on peace news.
• The war caused price swings in early 2026.
• Gold kept its safe status during stock declines.
• Recent drops mark a pause before a new upward trend.
• Silver benefits from limited supplies and strong tech demand.
• A peace deal may spark new investor interest in gold and silver.

This report comes from recent market analysis and news reports as of May 7, 2026. Data and forecasts may change as events move forward.

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This article was generated by Hivebox AI in collaboration with nGRND.
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