Gold climbs over 3% amid Middle East peace deal signals, softer dollar

Gold rose sharply on May 6 as reports that the United States and Iran were moving toward a framework deal weighed on the dollar and pushed oil prices lower.

Reuters-syndicated coverage said spot gold climbed between about 2% and 3.4%, while futures also advanced. The move followed reports that President Donald Trump had paused a Strait of Hormuz escort operation while saying progress had been made toward an agreement with Iran.

The market reaction reflects a familiar pattern: when geopolitical risk appears to ease, the dollar often softens and inflation expectations cool, which can support non-yielding assets such as gold. Lower oil prices also helped.

The reports did not say a final deal had been reached. They pointed instead to a possible framework or memorandum of understanding, leaving traders to weigh how real the diplomacy is and how much further the metal can run.

For now, gold’s rally is being driven by a mix of geopolitical de-escalation hopes and a weaker dollar rather than any single confirmed agreement.