Gold Falls as US-Iran Hormuz Standoff Heightens Inflation Risk

Gold declined as an escalation in tension over the Strait of Hormuz drove oil prices higher, rekindling concerns over high inflation.

Bullion fell as much as 1.6% before paring some losses during US hours. US and Iran tensions grew over the Strait of Hormuz with both sides maintaining their blockades of the critical waterway, creating an uneasy standoff with no new peace talks on the horizon. Brent extended its advance above $106 a barrel on worries that peace talks have stalled, rhetoric is amping up and military threats are increasing. Treasury yields and the dollar also climbed.