Gold market analysis

Gold Price Rally Expected to Continue  
May 8, 2026, 11:11 AM  

According to foreign media citing two sources and a U.S. official, the United States, Iran, and Oman are close to reaching a temporary agreement aimed at reopening the Strait of Hormuz, with the U.S. expected to announce the deal today. The preliminary agreement reportedly grants Iran certain control over traffic in the Strait of Hormuz before any potential conflict breaks out. However, the temporary accord is valid for only 60 days, though this period may be extended. 

Under the interim agreement, all vessels entering the Gulf via the Strait will pass through Iranian waters along the northern route, while vessels departing from the Strait into the Arabian Sea will travel along the southern route through Omani waters after coordination with Iran, without having to pay any fees during this 60-day period. Additionally, both sides will clear mines from the central channel of the Strait within 30 days; once completed, this route will serve as the designated shipping lane according to a permanent agreement soon to be negotiated between Oman and Iran. 

Stimulated by news developments, gold prices rose repeatedly yesterday in New York, with spot gold reaching a high of $4,105.8. As seen on the hourly chart, prices subsequently pulled back from their peak and dipped as low as $4,065.54 during this morning's Asian session. However, they quickly rebounded, not only achieving yesterday’s projected target of $4,124 but also breaking through the upper resistance of the recent sideways range, hovering around $4,130. On the daily chart, gold has approached the extended resistance line of the downward trend since July 6. With tensions between the U.S. and Iran gradually easing, oil prices are expected to decline further, alleviating inflationary pressures and reducing the likelihood of global central banks raising interest rates. This could support further upside for gold. In the short term, the next key target is the 50-period SMA on the daily chart (currently around $4,159). If gold breaks above and holds above $4,210, it could open up even greater room for further gains. 

The above information is for reference only and does not constitute investment advice.