Gold caught a bid on Wednesday after US and Iranian negotiators reached a tentative deal to extend their ceasefire by another 60 days. Spot prices rose 1.1% to roughly $4,504 per ounce, while US gold futures settled at $4,532.40.
Here’s the thing, though: zoom out just slightly and the picture looks less rosy. Gold is still on track for a 2.3% decline in May, a monthly retreat that underscores how shifting geopolitical currents can simultaneously lift and weigh on the same asset.
What happened with the ceasefire
On May 28, negotiators from both sides agreed to a memorandum of understanding that does more than just pause hostilities. The deal includes provisions for renewed discussions over Iran’s nuclear program and, critically, the reopening of the Strait of Hormuz to commercial shipping.
The extension follows an initial truce declared on April 8, which had been tested repeatedly by intermittent violations on both sides.
