Overview
- Gold fell as much as about 1.9% into the mid-$4,500s on Monday after President Trump said the U.S. would start guiding neutral commercial ships through the Strait of Hormuz under “Project Freedom.”
- Iran’s navy claimed it turned away U.S. warships and warned vessels not to transit without its approval, while U.S. Central Command said no American ships were hit and that forces were supporting the escort effort.
- The U.S.-led Joint Maritime Information Center set an enhanced security area south of the usual lanes and warned that typical routes are extremely hazardous because some naval mines and ordnance remain uncleared.
- Oil climbed with Brent back above $110 as reports of attacks near Fujairah and in the strait resurfaced, which lifted the dollar and bond yields and raised the cost of holding non‑yielding gold.
- Longer‑term demand stayed supportive as the World Gold Council reported central banks added gold at the fastest pace in more than a year in the first quarter.