Gold prices rose more than 1% on May 26, 2026.
Optimism for a U.S.-Iran peace deal to end the regional war drove the gains.
President Donald Trump announced that a memorandum of understanding to reopen the Strait of Hormuz is largely negotiated.
Crude oil prices dropped below $100 per barrel following the diplomatic progress.
The U.S. dollar weakened as easing inflation concerns softened expectations for aggressive interest rate hikes.
Newly sworn-in Federal Reserve Chair Kevin Warsh oversees this shift in monetary outlook.
Spot gold climbed 1.1% during the session.
The spot price reached $4,559.69 per ounce.
U.S. gold futures for June delivery gained 0.9%.
Futures settled at $4,561.30.
Analysts noted that falling oil prices improve the long-term monetary policy outlook for the non-yielding metal.