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Market & Economic Intelligence Platform Insight on Macro, Commodities, Equities & Policy

12 May 2026 08:11  |

Gold Rises Slightly, Here's Why!

Gold prices rose above US$4,750 per ounce on Tuesday (May 12), approaching their highest level in about three weeks. This increase occurred despite market concerns about inflation risks, following a surge in oil prices due to uncertainty surrounding the conflict in the Middle East and prolonged disruptions in the Strait of Hormuz.

Additional support came from a weakening US dollar, after strengthening earlier in the week. On the geopolitical front, US President Donald Trump called the US-Iran ceasefire on "massive life support" after rejecting Iran's latest peace proposal, raising concerns that the strategic shipping lane could remain effectively blocked for longer.

Several reports also stated that Trump would meet with his national security team to discuss the possible resumption of military operations and review plans for escorting commercial vessels through Hormuz. This situation kept demand for hedging assets active, although inflationary pressures from energy acted as a balancing factor.

Market participants now await the release of US consumer inflation (CPI) data to gauge how much the Iran conflict has affected price pressures and interest rate policy expectations. The data results have the potential to determine the next direction for gold, driven by the dollar and perceptions of inflation risk. (asd)*

Source: Newsmaker.id

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