Gold and silver prices weakened, pressured by a stronger dollar and stalled US-Iran negotiations.
2026-05-23 01:22:48
On Friday (May 22), spot gold and silver prices both came under pressure and fell in early trading. A stronger US dollar and high oil prices exerted double pressure on the precious metals market. Although the geopolitical situation in the Middle East continued to provide safe-haven support, the struggle between bulls and bears made it difficult for gold prices to break through key resistance areas.
Spot gold was quoted at $4,522 per ounce, down about 0.44%; spot silver was quoted at $75.80 per ounce, down about 1.00%.
US-Iran negotiations: Limited progress, differences remain.
Indirect negotiations between the US and Iran, mediated by Pakistan, continue, but the two sides have yet to reach a substantive agreement on core issues. A senior Iranian source revealed that the gap has narrowed somewhat, but an agreement is far from being finalized. Iran's uranium enrichment program and its control over the Strait of Hormuz remain the core points of contention in the negotiations.
U.S. Secretary of State Marco Rubio adopted a cautious approach to the progress of the negotiations, saying that the two sides had "made some progress," but emphasized that "the goal has not yet been achieved."
The situation in the Strait of Hormuz continues to weigh heavily on energy markets. Iran and Oman are discussing a proposal to impose tolls on ships passing through the strait, but this has been met with explicit opposition from US President Trump. Trump stated that the US wants the strait to remain open and free of charge, and warned that the US would take extreme measures if Iran seeks to develop nuclear weapons.
Oil prices and inflation expectations dominate market trends.
The current pressure on the precious metals market stems more from inflationary logic than from simple risk aversion. Brent crude oil is trading at around $104.44 per barrel, while US WTI crude oil is at around $97.44. High oil prices are pushing up global inflation expectations, which in turn strengthens the dollar and raises government bond yields, thus putting pressure on gold, which does not generate interest income.
Meanwhile, the University of Michigan's final May consumer sentiment index fell further to 44.8, down from the preliminary reading of 48.2; the consumer expectations index also dropped from 48.5 to 44.1. Notably, one-year inflation expectations rose from 4.5% to 4.8%, while five-year inflation expectations rose from 3.4% to 3.9%, both indicating that inflationary pressures are still intensifying.
Federal Reserve officials signal
Federal Reserve official Waller Waller spoke on Friday, stating that he does not support raising interest rates in the short term, believing that maintaining stable interest rates is the most appropriate approach at present, and noting that inflation will be a key variable in future policy decisions. This statement eased market concerns about a rate hike this year to some extent, but the overall hawkish monetary policy expectations continue to constrain gold prices.
Technical Analysis
Gold prices are currently above the 200-day moving average (approximately $4,375) on the daily chart, but continue to trade below the 100-day moving average (approximately $4,798), indicating an overall neutral to bearish trend. The first resistance level is between $4,538 and $4,546, with a break above targeting $4,573 and then $4,670. The first support level is at $4,490, with a break below that level likely targeting $4,453 and $4,400. The RSI indicator is currently around 40, and the MACD remains in negative territory and continues to weaken, suggesting limited potential for a significant short-term rebound.
Silver bulls need to recover the resistance level of $76.00 to $76.50. After breaking through, the next targets are $78.00 and $79.00. The first support level is $75.00. If it breaks down, the next targets are $74.68 and $74.00.
Spot gold was quoted at $4,522 per ounce, down about 0.44%; spot silver was quoted at $75.80 per ounce, down about 1.00%.
US-Iran negotiations: Limited progress, differences remain.
Indirect negotiations between the US and Iran, mediated by Pakistan, continue, but the two sides have yet to reach a substantive agreement on core issues. A senior Iranian source revealed that the gap has narrowed somewhat, but an agreement is far from being finalized. Iran's uranium enrichment program and its control over the Strait of Hormuz remain the core points of contention in the negotiations.
U.S. Secretary of State Marco Rubio adopted a cautious approach to the progress of the negotiations, saying that the two sides had "made some progress," but emphasized that "the goal has not yet been achieved."
The situation in the Strait of Hormuz continues to weigh heavily on energy markets. Iran and Oman are discussing a proposal to impose tolls on ships passing through the strait, but this has been met with explicit opposition from US President Trump. Trump stated that the US wants the strait to remain open and free of charge, and warned that the US would take extreme measures if Iran seeks to develop nuclear weapons.
Oil prices and inflation expectations dominate market trends.
The current pressure on the precious metals market stems more from inflationary logic than from simple risk aversion. Brent crude oil is trading at around $104.44 per barrel, while US WTI crude oil is at around $97.44. High oil prices are pushing up global inflation expectations, which in turn strengthens the dollar and raises government bond yields, thus putting pressure on gold, which does not generate interest income.
Meanwhile, the University of Michigan's final May consumer sentiment index fell further to 44.8, down from the preliminary reading of 48.2; the consumer expectations index also dropped from 48.5 to 44.1. Notably, one-year inflation expectations rose from 4.5% to 4.8%, while five-year inflation expectations rose from 3.4% to 3.9%, both indicating that inflationary pressures are still intensifying.
Federal Reserve officials signal
Federal Reserve official Waller Waller spoke on Friday, stating that he does not support raising interest rates in the short term, believing that maintaining stable interest rates is the most appropriate approach at present, and noting that inflation will be a key variable in future policy decisions. This statement eased market concerns about a rate hike this year to some extent, but the overall hawkish monetary policy expectations continue to constrain gold prices.
Technical Analysis
Gold prices are currently above the 200-day moving average (approximately $4,375) on the daily chart, but continue to trade below the 100-day moving average (approximately $4,798), indicating an overall neutral to bearish trend. The first resistance level is between $4,538 and $4,546, with a break above targeting $4,573 and then $4,670. The first support level is at $4,490, with a break below that level likely targeting $4,453 and $4,400. The RSI indicator is currently around 40, and the MACD remains in negative territory and continues to weaken, suggesting limited potential for a significant short-term rebound.
Silver bulls need to recover the resistance level of $76.00 to $76.50. After breaking through, the next targets are $78.00 and $79.00. The first support level is $75.00. If it breaks down, the next targets are $74.68 and $74.00.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
