Gold prices rose by over $100, while oil prices fell sharply.

News that the US and Iran are close to reaching an agreement to end hostilities helped gold prices surpass $4,700 and US crude oil prices fall close to $90 on the evening of May 6th.

At 7:30 PM (Vietnam time), the spot price of gold in the world market increased by $112 to $4,673. Earlier in the session, the price had at one point risen by more than $150 to surpass the $4,700 mark.

The spot price of gold in the global market rose above $4,700 on the evening of May 6th. Chart: Kitco

Conversely, crude oil prices have fallen sharply. This evening, Brent and WTI prices briefly dropped 10-11%, bringing WTI close to $90 a barrel. Currently, the decline has narrowed to 8%. Each barrel of Brent is priced at $101, while WTI is at $94.

Markets fluctuated after US media reported that the country was close to reaching an agreement with Iran through a memorandum aimed at ending hostilities and establishing a framework for nuclear negotiations.

The news site Axios, citing U.S. officials, reported that "the White House believes it is close to reaching an agreement with Iran" on a one-page, 14-point Memorandum of Understanding (MOU) drafted by Middle East envoy Steve Witkoff and Trump's son-in-law, Jared Kushner, along with several Iranian officials. A Pakistani official involved in the peace effort also confirmed this information to Reuters . "We are very close, very close," he said.

"A timely peace agreement would allow for the normalization of shipping through the Strait of Hormuz, thereby reducing inflationary pressure and paving the way for the US Federal Reserve to cut interest rates this year," said Ricardo Evangelista, an analyst at ActivTrades. He believes that if this scenario occurs, gold prices could regain upward momentum, returning to above $5,000 and even heading towards $5,500 by the end of the year.

The blockade of the Strait of Hormuz has disrupted 20% of global crude oil and liquefied natural gas (LNG) supplies. This has caused Brent crude oil prices to surge by nearly 60% in the past two months, increasing inflationary pressure.

Global gold prices were therefore under pressure throughout the conflict, as accelerating inflation made central banks hesitant to cut interest rates. Although a hedge against inflation and economic and political instability, the precious metal is at a disadvantage in a high-interest-rate environment because it does not pay fixed interest.

Source: https://baohatinh.vn/gia-vang-tang-hon-100-usd-dau-giam-manh-post310198.html