Gold (XAU/USD) rebounded from a two-month low on Thursday, May 28, 2026, as the US Dollar (USD) eased following reports of a potential US-Iran peace deal and softer US inflation data. According to verified market reports, XAU/USD was trading around $4,480 at the time of writing, recovering from recent lows.
The US Dollar Index (DXY) declined after headlines emerged suggesting progress in US-Iran negotiations, which reduced safe-haven demand for the greenback. Additionally, the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 0.2% month-over-month in April, below expectations of 0.3%, indicating easing price pressures.
Market analysts noted that the softer inflation data reinforced expectations that the Federal Reserve may pause its interest rate hiking cycle, further weighing on the dollar. The combination of geopolitical developments and economic data supported gold's appeal as an alternative asset.
As of May 29, 2026, gold prices remain sensitive to further developments in US-Iran talks and upcoming economic indicators. Traders are monitoring the situation closely for any shifts in monetary policy or geopolitical stability.
