Gold Maintains Steady Pricing Amid Ongoing Middle East Tensions, Oil Futures Decline

Commodity Markets Open with Caution on May 5

Commodity markets began the day on a mixed note on May 5, as investors carefully assessed evolving global macroeconomic cues, currency movements, and shifting demand trends across major economies.

Gold Prices Remain Steady Amid Escalating Middle East Tensions Gold prices were largely steady on Tuesday as investors assessed the potential economic fallout from escalating Middle East tensions and stalled U.S.–Iran peace negotiations. Spot gold rose 0.2% to $4,528.99 per ounce, while U.S. gold futures for June delivery edged up 0.1% to $4,538.20.

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In contrast, silver rose 0.3% to $72.99, while platinum and palladium edged lower.

Oil Prices Ease Following Previous Day's Surge Oil prices eased after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran's closure of the key Strait of Hormuz waterway, potentially opening up supply from the key Middle East producing area. The U.S. on Monday launched a new operation aimed at reopening Hormuz to shipping, and Maersk said later its Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by U.S. military assets, easing some immediate supply disruption fears.

Brent oil futures for July fell 68 cents, or 0.6%, to $113.76 per barrel at 0100 GMT, after settling up 5.8% on Monday. U.S. West Texas Intermediate (WTI) crude fell $1.59, or 1.5%, to $104.83, after gaining 4.4% in the previous session.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

U.S. Dollar Remains Firm on Safe-Haven Demand The U.S. dollar remained firm, supported by safe-haven demand as geopolitical tensions in the Middle East weighed on global risk sentiment. The dollar index stood at 98.48, after rising 0.3% in the previous session.