Gold falls as inflation, Hormuz risks mount

Gold fell sharply amid rising inflation concerns and escalating tensions over the Strait of Hormuz after US-Iran talks failed to reach a deal.

The precious metal dropped as much as 2.2% to below $4,650 an ounce, erasing last week’s gains.

Washington announced that it will enforce a blockade on the Strait of Hormuz today, April 13. The blockade will begin at 10 a.m. ET.

Oil and gas prices surged, while the dollar rose 0.4%, adding pressure on gold.

Higher energy costs are also fueling inflation risks, potentially delaying rate cuts or prompting hikes—typically negative for non-yielding assets like gold.

US inflation data for March showed the fastest rise in nearly four years, driven largely by a spike in gasoline prices.

Spot gold fell 2% to $4,656.55 an ounce as of 6:56 am Singapore time.

Silver dropped 3.1% to $73.52, while platinum and palladium also declined. The Bloomberg Dollar Spot Index rose 0.4%.