Gold prices declined on Monday, driven by a stronger US dollar and renewed inflation concerns following another closure of the Strait of Hormuz, which caused oil prices to rise. As of 1103 GMT, spot gold was down 0.8% to $4,790.59 per ounce, hitting its lowest mark since April 13. US gold futures for June delivery fell 1.4% to $4,811.
Han Tan, chief market analyst at Bybit, noted, “Oil’s surge after the weekend’s chaotic events surrounding the Strait of Hormuz ensure that inflation risks remain palpable, offsetting gold’s allure as a safe-haven asset. The precious metal has taken a backseat to the dollar’s role as the preferred safe haven throughout the conflict so far.”
Market analysts predict that barring significant and sustained de-escalations in the ongoing conflict, spot gold will likely remain within these sub-$5,000 levels. The US announced on Sunday that it had seized an Iranian cargo ship attempting to breach its blockade, prompting Iran to threaten retaliation and heightening fears of renewed hostilities.
Oil prices surged by approximately 5% amid concerns that the ceasefire between the United States and Iran could collapse, with traffic through the Strait of Hormuz largely impeded. The strengthening dollar index made gold, priced in dollars, more expensive for holders of other currencies. Concurrently, benchmark 10-year US Treasury yields increased, raising the opportunity cost associated with holding non-yielding bullion.
Despite gold’s reputation as an inflation hedge and a safe haven amid geopolitical tensions and economic uncertainty, rising energy costs connected to the conflict in Iran have heightened inflation worries, leading to a downturn in gold prices as monetary tightening by the US Federal Reserve looms.
Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com, stated, “Nonetheless, gold retains the ability to extend its recent rebound as structural demand drivers persist. Central bank buying, de-dollarisation, and currency debasement trends may have faded but remain alive and can support bullion.”
In the broader commodities market, spot silver fell 2.1% to $79.07 per ounce, with platinum decreasing by 1.7% to $2,066.90, while palladium was down 1.6% at $1,533.64.
Published on April 20, 2026.
