Gold Falls as Renewed Hormuz Disruption Stokes Inflation Concern
A one kilogram gold bar inspected at the Perth Mint Refinery, operated by Gold Corp., in Perth, Australia.
Photographer: Matt Jelonek/BloombergGold fell after a weekend flare-up in Middle Eastern waters renewed inflation risks from an energy-supply shock and cast doubt over talks to end the Iran war.
Bullion dropped as much as 1.9%, before paring much of the loss to trade around $4,810 an ounce. President Donald Trump said it’s unlikely he would extend a truce with Tehran if an agreement isn’t reached before it ends, adding the Strait of Hormuz would remain blocked until an accord is finalized. Oil and gas prices climbed, stoking renewed concern about inflation, which dims the possibility of interest-rate cuts by the Federal Reserve. That’s negative for bullion as it pays no interest.