On May 7, gold extended its winning streak to a third consecutive session as rising optimism surrounding a potential U.S.-Iran peace agreement lifted risk appetite and eased inflation concerns across global markets. Gold spot price is trading at $4,740.42 per ounce, up $46.12 (+0.98%) on the day. Silver spot price is trading at $81.19 per ounce, up $4.03 (+5.22%) on the day. The gold-to-silver ratio narrowed sharply to 58.4, reflecting silver’s outsized gains as the white metal surged to its highest level since April 17. The key catalyst driving today’s move was President Trump’s prediction of a swift end to the Iran war, with Tehran actively reviewing a U.S. peace proposal that could reopen the Strait of Hormuz and remove the inflationary premium that has weighed on financial markets since late February. A weaker U.S. dollar further amplified the rally, making dollar-denominated metals more attractive to overseas buyers.
According to Reuters, gold rose for a third straight session on Thursday as investors grew increasingly confident that diplomatic progress between Washington and Tehran would cool oil-driven inflation pressures and revive the Federal Reserve’s rate-cut window. Brent crude fell below $100 a barrel on the news, and TD Securities noted a clear path to gold above $5,200 per ounce once conflict-related inflation pressures fully dissipate. Meanwhile, China’s central bank reported its 18th consecutive month of gold reserve additions in April, reinforcing the structural demand floor beneath bullion. For physical gold investors, the hidden insight is this: the current rally is being driven not by fear, but by the removal of it. When war risk premium collapses, gold historically enters a “relief rally” phase where lower oil prices reduce the inflation that keeps rates high — unlocking the very monetary easing that supercharges bullion’s upside. The combination of persistent central bank accumulation and a shifting Fed stance suggests the floor under physical gold is far stronger than spot prices alone imply.
