Gold Holds Decline on Renewed Hormuz Blockade and Hawkish Fed

Gold was lower as escalating hostilities in the Strait of Hormuz boosted geopolitical risk and as US monetary-policy remarks increased expectations for additional interest-rate hikes to contain inflation. Higher-rate expectations typically pressure non-yielding gold, reinforcing the downside move.

Analysis

Gold was lower as escalating hostilities in the Strait of Hormuz boosted geopolitical risk and as US monetary-policy remarks increased expectations for additional interest-rate hikes to contain inflation. Higher-rate expectations typically pressure non-yielding gold, reinforcing the downside move.