09:37 AM EDT, 05/06/2026 (MT Newswires) -- Gold prices rose early Wednesday as the U.S. dollar and yields were sharply lower on reports Iran and the United States are closing in on a deal to end their war, while U.S. private-sector hiring surged last month.

Gold for June delivery was last seen up $123.10 to US$4,691.60 per ounce.

The gain in the precious metal follows reports, later confirmed by U.S. President Trump, that Iran and the United States are close to a negotiated deal to end hostilities. In a social media post, Trump said the war "will be at an end" and the Strait of Hormuz will reopen to traffic if Iran agrees to a U.S. peace proposal.

Oil traded sharply lower on expectations a deal would reopen the Strait of Hormuz, the chokepoint for 20% of daily oil supply from Persian Gulf nations, easing worries over rising inflation and higher interest rates due to the supply shock.

"Washington is shifting focus to reopening the strait amid foreign pressure and rising domestic opposition to the war," Saxo Bank noted.

U.S. private sector hiring surged in April, with the ADP National Employment Report seeing a rise of 109,000 private-sector jobs last month, up from 61,000 in March and above expectations for a rise of 84,000 positions according to Marketwatch.

The dollar was sharply lower early, with the ICE dollar index last seen down 0.51 points to 97.93. Treasury yields also fell, with the yield on the U.S. two-year note last seen down 6.2 basis points to 3.888%, while the 10-year note was paying 4.364%, down 6.6 points.