Overview
- Gold touched a near 2% intraday drop after the U.S. seized an Iranian‑flagged cargo ship and Iranian state media claimed drone strikes on U.S. vessels in response.
- Oil prices jumped as much as 7%, reviving inflation concerns that have already contributed to roughly a 9% slide in gold since late February.
- The Bloomberg Dollar Spot Index rose about 0.2%, making dollar‑priced gold more expensive for buyers using other currencies.
- Several commercial ships turned back from the Strait of Hormuz after mixed signals on whether the waterway was open for passage.
- A two‑week ceasefire is close to expiring and Iran has not committed to talks in Islamabad, keeping near‑term risk high for energy prices and lowering the odds of rate cuts that would support gold.