Gold rebounds from five-week low, but inflation fears cap gains

Wednesday, 6 May 2026 01:48 - - {{hitsCtrl.values.hits}}

Gold prices have risen from a five-week low hit in the previous session, although gains were limited as elevated crude oil prices kept inflation fears alive and clouded the US interest rate outlook.

Spot gold rose 0.5% to $4,543.33 per ounce by 06:15 GMT after a more than 2% drop on Monday. US gold futures for June delivery inched 0.4% higher to $ 4,553.10.

“Prices seem to be digesting a bit after the return of the ‘war trade’ across markets sent gold lower Monday,” said US-based Tastylive Head of global macro Ilya Spivak.

However, gains were capped as US Treasury. “Yields and the dollar pushed higher as a rebound in crude oil stoked inflation fears. That weighed against non-interest-bearing and anti-fiat gold,” Spivak said.

While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal.