Gold Falls as Flare-Up of Hormuz Tensions Fuels Inflation Risks

Gold fell as escalating Middle East tensions threaten a ceasefire between the US and Iran, keeping energy prices elevated and fueling inflation risks.

Bullion dropped as much as 2.4% to extend Monday’s decline after the United Arab Emirates said its air defense system were responding to a missile threat from Iran while Tehran warned it was tightening its grip on the Strait of Hormuz. A fresh plan announced by US President Donald Trump to help vessels through the key waterway has left shipping executives perplexed, as attacks continued and traffic remains at a near standstill.