Quote on Daily Gold Commentary for May 5th, 2026 by By Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd.
Below the Quote on Daily Gold Commentary for May 5th, 2026 by By Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd.
Gold prices pressured by a firm dollar and yields and rising inflation expectations as oil prices surged amid escalating Middle East tensions. However, rising USDINR is capping losses for bullion on domestic front. Over the weekend, U.S. President Trump announced “Project Freedom,” an initiative aimed at reopening the Strait of Hormuz, a key route handling nearly 20% of global oil flows, which has remained largely blocked by Iran since the conflict began. Reports of missile exchanges, attacks on vessels, and an Iranian strike on UAE’s Fujairah oil hub intensified supply disruption fears, pushing crude prices sharply higher and amplifying global inflation concerns. This has reinforced expectations of a more hawkish stance from major central banks, including the Federal Reserve, weighing on non-yielding assets like gold. Despite heightened geopolitical risks, bullion struggled to gain as higher bond yields and a firm dollar capped upside. Markets also reacted to stronger U.S. data, with factory orders beating expectations, further supporting the dollar. Focus now shifts to global PMI readings and upcoming U.S. labor market data for further directional cues.
Above views are of the author and not of the website kindly read disclaimer
