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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Gold prices dropped below the $4,700 per ounce level following President Trump's rejection of a peace proposal from Iran. Trump characterized the latest Iranian response as 'totally unacceptable,' causing immediate de-escalation hopes to fade. The rejection signals a continuation of geopolitical tensions and the naval blockade, causing markets to price in a 'longer war' scenario despite previous optimism.
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Sign InThis decline comes as safe-haven assets face technical pressure, with gold breaking a significant psychological support level. According to market data, investors are closely monitoring currency movements alongside mixed economic data, such as Spain's Services PMI which recorded 47.9, missing the 52 forecast (May 6, 2026 data). Additionally, US ADP Employment Change showed 109k jobs added, exceeding the 99k forecast, which bolstered the dollar and pressured metal prices.
Looking ahead, traders are eyeing several economic catalysts, including US Initial Jobless Claims forecasted at 205k (May 7, 2026 calendar). With gold stabilizing below $4,700, focus shifts to upcoming Fed speeches for clues on future monetary policy. Support levels should be monitored closely as ongoing geopolitical uncertainty may provide a floor to the current bearish momentum.