Gold Retreats, Oil and Gas Rally After Hormuz Ultimatum
Gold weakened on Monday (April 13) amid rising inflation concerns after US-Iran peace talks ended inconclusively and Washington prepared to impose a blockade on the Strait of Hormuz, deepening the global energy supply crisis. Bullion briefly fell as much as 2.2% to below US$4,650/oz before paring losses after the US military announced the blockade would begin at 10:00 a.m. ET.
The surge in energy prices since the conflict began has raised inflation risks and increased the likelihood that central banks will delay interest rate cuts or even consider raising them again—a combination that is typically negative for non-yielding gold. Pressure also came from a strengthening dollar (the dollar index rose about 0.3%) and weaker stocks, while oil and gas prices rallied again. President Donald Trump asserted that the US would intercept ships paying fees to Iran for “safe passage” through Hormuz, a waterway that before the war carried about a fifth of global oil and LNG.
On the demand side, a Swiss private bank is said to have begun gradually adding gold to client portfolios after previously cutting exposure to 3% from around 10%. Meanwhile, BLS data released Friday showed March inflation jumped the most in nearly four years, with rising gasoline prices accounting for nearly three-quarters of the monthly increase—reinforcing the energy inflation narrative.
Trendwise, gold remains down around 10% since the conflict in late February, although it has recovered recently as concerns about an economic slowdown began to temper expectations of higher interest rates. ANZ believes gold has the potential to retest the US$4,650 area but is likely to remain within that range. At 10:02 a.m. London time, spot gold fell 0.5% to US$4,725.28/oz; silver fell 1.9% to US$74.47/oz, platinum remained relatively stable, and palladium strengthened.
Source: Newsmaker.id
