ETO Markets Global Pulse: Gold Rises 1.4% as Oil Slumps

Market Review

According to ETO Markets monitoring, on May 25 (Monday), spot gold rose sharply by 1.4%, closing at USD 4,570 per ounce. June gold futures also moved higher.

Substantive US-Iran talks in Doha, Qatar lifted market sentiment, as the Strait of Hormuz may reopen. Oil prices plunged nearly 7%, easing inflation concerns and reducing rate-hike expectations. The USD index also weakened, giving gold further support.

On May 26 (Tuesday) during early Asian trading, spot gold moved in a narrow range around USD 4,570 per ounce.

Global Headlines

US Iran Talks Make Progress

Trump said the US and Iran will either reach “a great and meaningful agreement” or have no deal at all. He stressed that he would not sign any agreement allowing Iran to obtain nuclear weapons. Talks are focused on nuclear wording and sanctions relief. US officials remain optimistic, while Irans presence in Qatar is seen as a positive signal.

FED Hike Odds Fall To 48%

According to CME FEDWatch data, the probability that the FED keeps rates unchanged in June stands at 99.9%, while the chance of a 25bp rate cut is only 0.1%. By December, markets price a 52% chance of no change, a 48% chance of at least one 25bp rate hike, and a 0.1% chance of a 25bp rate cut.

Saudi Maintains Abraham Accord Position

Trump urged Saudi Arabia and other countries to sign the Abraham Accords and normalize ties with Israel before any US-Iran deal. Saudi sources said the countrys position on Palestine remains unchanged. Riyadh still requires an irreversible path toward Palestinian statehood. Without that, Saudi Arabia will not normalize relations with Israel.

US Conducts Iran Self-Defense Strike

US Central Command said US forces carried out “self-defense strikes” in southern Iran to protect American troops from threats. Targets included missile launch sites and Iranian vessels allegedly attempting to lay mines. The command said it would continue defending US forces while showing restraint during the ceasefire.

Hydrogen Supports Platinum Demand

The World Platinum Investment Council said the hydrogen economy is becoming a structural driver of platinum demand over the next decade. From 2021 to 2025, global green hydrogen output rose from about 50,000 tonnes to around 300,000 tonnes, while electrolyzer capacity increased from 0.6 GW to 4.9 GW. The council expects hydrogen-related platinum demand to reach about 400,000 ounces by 2030.

ETO Markets Analyst View (Spot Gold)

Spot gold remains in a mildly bullish consolidation structure, with 4,552 acting as the key intraday support level. If prices stay above 4,552, rebound momentum may continue, with upside levels to watch at 4,589 and 4,620.

If gold falls below 4,552, the short-term structure may weaken. In that case, support is seen at 4,530 and 4,510. Overall, gold is still confirming direction after a low-level recovery.

RSI is above the neutral 50 level, suggesting that short-term momentum remains relatively strong. Price still has room for further recovery. With markets reacting to US-Iran talks, lower oil prices, and shifting FED rate expectations, price action may remain uneven.

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