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Gold Holds Steady, Eyes Fourth Weekly Gain on US-Iran Peace Deal Hopes

Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)
Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)
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Gold Holds Steady, Eyes Fourth Weekly Gain on US-Iran Peace Deal Hopes

Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)
Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)

Gold held largely steady on Friday and was on track for a fourth straight weekly gain, as hopes for a US-Iran peace deal eased fears of higher inflation and elevated interest rates.

Spot gold eased 0.1% to $4,784.72 per ounce by 0646 GMT, but was up about 1% so far this week. US gold futures for June fell 0.1% to $4,805.20.

A 10-day ceasefire between Lebanon and ‌Israel went ‌into effect on Thursday and US President Donald ‌Trump ⁠said the next meeting between ⁠the United States and Iran may take place over the weekend.

"Investors are now watching closely for concrete progress in US-Iran negotiations. Any progress or extension of the current fragile ceasefire could further calm oil markets and inflation fears, potentially unlocking more upside for gold," said Tim Waterer, chief market analyst at KCM Trade.

The US dollar was headed ⁠for a second weekly drop, making greenback-denominated commodities ‌more affordable for holders of other currencies, Reuters said.

Oil ‌prices fell, easing fears of higher inflation on optimism that the Iran ‌war could be nearing an end.

Concerns that higher energy prices ‌could stoke inflation and keep global interest rates higher for longer have driven down gold prices by more than 8% since the Iran war began in late February.

While gold is considered an inflation hedge, higher interest rates crimp ‌demand for the non-yielding asset.

Traders now see a 27% chance of a 25-basis-point Federal Reserve interest ⁠rate cut in ⁠December. Before the war, there were expectations of two reductions for this year.

Meanwhile, Indian banks have halted gold and silver import orders from overseas suppliers, with tons of the metals stuck at customs as a formal government order has not been issued authorizing bullion imports.

Gold demand in India was modest this week, as high domestic prices weighed on retail purchases ahead of the key Akshaya Tritiya festival weekend, while premiums in China held steady.

Spot silver rose 0.3% to $78.61 per ounce, and was headed for a fourth straight weekly gain.

Platinum fell 0.3% to $2,079.24 and palladium was down 0.5% at $1,542.50. Both the metals were on track for a third straight weekly gain.

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Business

ECB Tells Banks to Invest More to Get a Grip on AI Security Risk

European Central Bank Vice-President Luis de Guindos, left, speaks with European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis during a meeting of EU finance ministers at the European Council building in Brussels, Tuesday, May 5, 2026. (AP Photo/Geert Vanden Wijngaert)
European Central Bank Vice-President Luis de Guindos, left, speaks with European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis during a meeting of EU finance ministers at the European Council building in Brussels, Tuesday, May 5, 2026. (AP Photo/Geert Vanden Wijngaert)
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ECB Tells Banks to Invest More to Get a Grip on AI Security Risk

European Central Bank Vice-President Luis de Guindos, left, speaks with European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis during a meeting of EU finance ministers at the European Council building in Brussels, Tuesday, May 5, 2026. (AP Photo/Geert Vanden Wijngaert)
European Central Bank Vice-President Luis de Guindos, left, speaks with European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis during a meeting of EU finance ministers at the European Council building in Brussels, Tuesday, May 5, 2026. (AP Photo/Geert Vanden Wijngaert)

Euro zone banks need to invest more in cybersecurity if they are to get a grip on new AI models that can find flaws in software, the European Central Bank's outgoing Vice President Luis de Guindos said on Wednesday.

New large language models such as Anthropic's Mythos are viewed by cybersecurity experts as posing significant challenges to the banking industry and its legacy technology systems, prompting a series of warnings from regulators and policymakers around ⁠the world.

The ECB has ⁠been quizzing euro zone banks about their preparedness for weeks, including at a meeting this week, and de Guindos said the sector needed to reach deeper into its pockets to strengthen its defenses against cyberattacks powered by AI.

"We have to understand ⁠much better the potential implications of these new models and to try to put in place the systems and cybersecurity patches that can address that situation," de Guindos, whose term runs out at the end of the month, told reporters.

"And (we have) to try to start to enhance the awareness of the financial institutions, of the banks, about the need of additional cybersecurity investment, because it's going to be something that ⁠is ⁠going to be quite structural in the near future."

He said the meeting with euro zone lenders on Tuesday featured a presentation by a US bank which, unlike its counterparts on this side of the Atlantic, has had access to Mythos.

"The main message to everyone is cyber is becoming more and more important," de Guindos said. "We have to invest more. And investment has to be pervasive. It's not only for the large banks. It's as well for the small banks."

Business

Alvarez & Marsal Returns to Lebanon’s Central Bank to Trace Missing $20 Billion

People walk outside Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir
People walk outside Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir
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Alvarez & Marsal Returns to Lebanon’s Central Bank to Trace Missing $20 Billion

People walk outside Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir
People walk outside Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir

Lebanon’s central bank (BDL) has formally reappointed consulting firm Alvarez & Marsal to conduct a comprehensive forensic audit on the period from October 2019 through the end of 2023, in a move aimed at uncovering possible misuse, embezzlement, and waste involving more than $20 billion in depleted foreign reserves.

The announcement, made in coordination with the finance and justice ministries, reflects renewed commitments by BDL to disclose how public funds and central bank reserves were managed during Lebanon’s financial collapse.

A senior official described the decision as a significant step toward applying international accounting standards to investigate allegations of financial misconduct tied to the rapid depletion of central bank reserves following the onset of Lebanon’s economic crises nearly seven years ago.

According to BDL, the audit is part of a joint institutional effort to review a period marked by large-scale financial interventions carried out by the bank on behalf of both public and private sector entities.

The selection of Alvarez & Marsal is particularly significant because the firm previously conducted a forensic audit of the central bank’s accounts covering 2015 to 2020. Officials believe the new review could build on earlier findings submitted to the Finance Ministry and provide a clearer accounting of how funds were spent.

A senior official told Asharq Al-Awsat that the audit and its expected findings could reshape Lebanon’s financial recovery strategy by establishing a credible basis for restructuring financial data, supporting legal accountability efforts, recovering misappropriated funds, and advancing reforms long demanded by international donors and financial institutions, particularly the International Monetary Fund and the World Bank.

Scrutiny of Subsidy Programs

The audit will focus heavily on subsidy programs approved by successive Lebanese governments between 2019 and 2023, involving billions of dollars in transfers and payments, as well as funds provided by the central bank to public institutions and government agencies.

It will also examine international transfers made by BDL to commercial banks’ overseas accounts.

According to the central bank, the primary objective is to determine whether all transfers and payments - particularly those tied to subsidy programs - were legally authorized, reached their intended beneficiaries, and were used for their stated purposes without misuse or exploitation of public funds.

The central bank said the audit would assist the finance and justice ministries in identifying and prosecuting individuals or entities that may have improperly benefited from subsidy funds or diverted them from their intended purposes. Once completed, the report will be formally submitted to both ministries.

Preliminary estimates indicate the renewed audit will examine at least $11 billion spent on consumer subsidy programs during the period, much of it allocated to fuel subsidies. Large quantities of subsidized fuel were allegedly smuggled into Syria through illicit trade networks while Lebanese motorists queued at gas stations.

Consumer subsidy programs were also marred by major loopholes, including support for luxury goods that offered little benefit to ordinary citizens. At the same time, subsidized Lebanese products reportedly appeared at discounted prices in markets abroad, including Syria, Kuwait, Cyprus, and other Arab and European countries.

There were similar concerns son medicine and medical supply subsidies, amid allegations of hoarding and artificial shortages despite extensive public support. Lists of subsidy recipients and traders had previously been referred by the central bank to public prosecutors, but investigations have so far produced few meaningful results.

Business

TotalEnergies Extends Fuel Price Cap in France Through June

This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)
This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)
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TotalEnergies Extends Fuel Price Cap in France Through June

This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)
This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)

Oil major Total Energies said on Wednesday it would extend its policy of capping fuel prices at its French service stations through the month of June as the Middle East crisis continues.

The company said it would ⁠keep the price ⁠caps, first announced in March, at €1.99 ($2.32) per liter for gasoline and €2.25 per liter for diesel.

French Finance Minister Roland Lescure welcomed the ⁠decision but told BFM TV he also would not rule out imposing a new tax on profits energy companies have made during the surge in energy prices provoked by the Iran war.

Several French opposition politicians have advocated for additional so-called windfall taxes ⁠on ⁠oil companies including TotalEnergies since the war began in late February.

TotalEnergies' Chief Executive Patrick Pouyanne said earlier this month the company would end its cap on prices were such a tax approved.