Gold prices briefly turned positive on May 1, 2026 after recovering from earlier losses, but ended the session largely flat. Sentiment improved following reports that Iran had submitted a new proposal for talks with the US to end the war, raising hopes of a diplomatic breakthrough. This eased concerns over rising tensions, pulling oil prices lower, and reducing concerns over inflation. The softer inflation outlook helped gold recover some of its earlier losses.
On the Multi Commodity Exchange (MCX), June gold futures settled flat at Rs 1,51,363 per 10 grams. After hitting the day’s low of Rs 1,49,742, the contract surged to an intra-day high of Rs 1,52,208 before closing flat.
In the international market, on COMEX, the June gold futures closed slightly in the negative at $4,625.60 per ounce, after witnessing a day’s low and high of $4,570 and $4,673.
Gold prices have been on a downtrend since the US-Iran war began in late February, even though the metal is usually seen as a safe-haven asset during times of geopolitical uncertainty. Since touching its all-time high of Rs 2,02,984 per 10 grams on January 29 this year, MCX gold has corrected over 25 per cent.
Iran’s New Proposal To End War
Iran has submitted a fresh proposal for negotiations with the US, said Iranian state media and a Pakistani official on May 1, raising hopes of renewed diplomatic efforts to end the ongoing conflict.
The Pakistani official, involved in mediation efforts, said the proposal was received late on April 30 and forwarded to the US. Neither the official nor Iran’s state news agency Islamic Republic News Agency (IRNA) disclosed details of the proposal.
US President Donald Trump had said on April 28 that he was not satisfied with Iran’s earlier proposal. Pakistan is yet to announce a date for fresh talks to end the war.
Crude Oil Prices Ease After Iran’s New Proposal
Iran’s new proposal also raised hopes of a possible breakthrough, easing geopolitical concerns and easing crude oil prices.
The Brent crude oil futures tumbled 5.12 per cent to $108.17 per barrel on May 1. Likewise, the US oil benchmark, West Texas Intermediate (WTI) crude oil futures slipped 2.98 per cent to $101.94 per barrel. Earlier on April 30, Brent crude had touched a four year high of $126.41 per barrel, but has since eased around 14.50 per cent.
