US suspends Iran attack; USD slips, gold rebounds to $4600, oil drops ~2%.

On Monday, Trump said that at the request of Middle Eastern countries, the planned attack on Iran scheduled for Tuesday would be postponed. Once an acceptable agreement cannot be reached, one should be prepared to immediately carry out a large-scale comprehensive military strike against Iran. The US dollar index plummeted, ultimately closing down 0.02% at 98.96 points; The benchmark 10-year Treasury yield closed at 4.593%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 4.059%. On May 18th, boosted by the weakening of the US dollar, spot gold rose slightly by 0.7% to $4566, but the surge in oil prices and the record high US Treasury yields formed a double suppression, limiting the rise in gold prices. Trump announced a suspension of attacks on Iran to advance peace talks, but Iran's stance remains tough and there is still a risk of supply disruption in the Strait of Hormuz. JPMorgan Chase has significantly lowered its gold price forecast for 2026. In the short term, the high oil prices and high-yield environment have put pressure on gold, and in the medium to long term, attention still needs to be paid to the progress of geopolitical negotiations and the direction of Federal Reserve policies. The US and Brent crude oil prices quickly fell back, having previously risen by over 3%. WTI crude oil ultimately closed up 0.92% at $106.87 per barrel; Brent crude oil almost gave up all its intraday gains, ultimately closing up 0.19% at $109.35 per barrel.