Gold and Silver Up as U.S. Awaits Iranian Peace Proposal Answer

 

Gold and Silver Up as U.S. Awaits Iran Peace Deal Response

(Bullion News Network) – Gold and silver gained to end the week, following Wall Street closely as both markets awaited more news out of Tehran. The spot price of gold added a modest amount on the day, gaining around $33 per troy ounce. Silver had another impressive performance, adding more than $2 per troy ounce to close the week above $80.50/ozt. The price action favored silver, driving the gold-silver ratio down by more than 1.25%.

Optimism surrounding the conflict in Iran drove precious metal prices in the second half of the week. Earlier this week, sources confirmed that the United States submitted a new proposal to Iran in an effort to end the war. While the details of the proposal are not yet public, insiders say that the memo would end the chokehold on the Strait of Hormuz and extend the ceasefire while tabling larger nuclear discussions for a later date.

American markets jumped on the news, and Wall Street closed distinctly higher heading into the weekend. Precious metals, including gold and silver, have maintained an uncommon relationship with movement on Wall Street throughout the year. Although gold has historically thrived in uncertain periods of conflict and war, the metal has tended to follow the stock market as the conflict between the U.S. and Iran developed.

This trend certainly continued throughout the week. Gold gained marginally on Friday, adding over $30/ozt to reclaim ground above $4,700 per troy ounce. Silver logged another day of outpacing gold, gaining more than $2 per troy ounce to close the week above the $80 line.

In the U.S., Friday also saw a better-than-expected employment report. The April U.S. employment report saw the American economy add 115,000 jobs, outpacing a median forecast of around 55,000 jobs. Unemployment remained unchanged, securing a second consecutive month of labor market growth – despite uncertainty surrounding the conflict in Iran.

The positive labor market reading led to a marginal increase in rate cut expectations. Friday afternoon, CME FedWatch projected the probability that the FOMC will vote to cut interest rates at its June meeting at 6.2%, up from 3.6% on Thursday and 2.0% last month. Although the Federal Reserve is still largely expected to leave rates unchanged when it meets in June, progress made on both labor strength and consumer prices since March may give the FOMC quite a lot to think about.

That June meeting will also likely be headed by Kevin Warsh, who is set to take over the Federal Reserve as chair once his confirmation in the Senate is finalized. Warsh will face an especially uncertain situation at the FOMC, however. President Trump repeatedly urged outgoing Fed chair Jerome Powell, who leaves the office on May 15th, to cut interest rates. Although Warsh is likely to face similar pressure from the White House, it is unclear at this point whether the rest of the FOMC is prepared to begin easing economic policy.

The FOMC’s April meeting saw the first vote with four dissents since 1992. Fed Governor Stephen Miran voted to cut rates again, but the other three dissenters disagreed with the “rate cut bias” present in the committee’s final statement. Some analysts have speculated that these three dissents were a message to Warsh that other voting members on the committee may not be willing to go along with plans to cut interest rates.

Additionally, the effects of the Iran conflict on the American economy may yet be unclear. While Powell stated in his press conference following the Fed’s April meeting that the inflationary impact of the war seems to have been isolated primarily to the energy sector, he did note that the committee will be watching closely to see the extent and stickiness of these price hikes, especially if they begin to impact other measures of consumer prices.

What does it all mean? Well, for one thing, the FOMC’s meetings could still spark uncertainty and speculation, which could have an outsized impact on day-to-day volatility among precious metals. Throughout 2025, speculation leading up to Federal Reserve meetings was a major price driver, especially for gold. This has not always been the case in 2026, especially as traders pivoted their attention to the conflict in Iran and rising oil prices.

Rate cut speculation could very well return as an outsized driver of demand for gold and silver later this year, especially if a cession of hostilities between the U.S. and Iran leaves s bit more room in the headlines.

This weekend, the main focus for precious metal traders will continue to be on Iran, and particularly on the Strait of Hormuz. The price of crude oil retreated for most of the week but gained more than a percentage point on Friday after the U.S. fired on Iranian ships purportedly attempting to break through the naval blockade. President Trump told reporters on Friday that the ceasefire will continue as the U.S. awaits a response from Tehran on its peace proposal.

Next week, traders can look forward to a fresh Consumer Price Index (CPI) report for the month of April. The median projection sees a retraction in the overall CPI but an increase in both the year-over-year CPI and core CPI. This report could play a significant role in how the FOMC reads U.S. economic strength as it prepares for its next meeting in June. Any major surprises could have a major effect on markets, so investors should look out.