Gold Falls, Hormuz Incident Sparks Concerns!
Gold prices weakened after ships came under fire again in the Strait of Hormuz over the weekend, fueling fresh concerns about energy supply disruptions that have exacerbated inflationary pressures stemming from more than seven weeks of conflict in the Middle East. Bullion fell near $4,780 an ounce in early trading, paring most of last week's 1.7% gain.
President Donald Trump said the U.S. Navy fired on and seized an Iranian-flagged cargo ship, while Tehran warned that ships approaching the strait would be considered a ceasefire violation. Several ships were reportedly forced to cancel their crossings just hours after Iran declared the passage open, further adding to logistical uncertainty at a key intersection for global energy trade.
The latest developments also weighed on the prospects for peace talks in Islamabad. Trump said he saw the possibility of a deal, but also renewed threats against Iranian infrastructure, while Iran said there was no "clear prospect" of reaching one. The episode underscored the fragility of the ceasefire, which was set to expire on Tuesday.
In other markets, oil prices surged on Monday after falling in the previous session when Iran declared Hormuz "fully open." US stock futures weakened, while the dollar index strengthened by about 0.3%, pressuring gold, which is priced in US dollars.
From a fundamental perspective, prolonged energy supply shocks increase inflation risks, making central banks more likely to hold interest rates or even raise them, a situation that is a drag on non-yielding bullion. Spot gold fell 1% to $4,780.89 an ounce at 6:57 a.m. in Singapore; silver fell 1.6% to $79.59, while platinum and palladium also weakened, with the Bloomberg Dollar Spot Index rising 0.2%. (asd)
Source: Newsmaker.id
