XAUUSD Gold fell below $4,800 an ounce on Monday as renewed concern over the Strait of Hormuz lifted oil prices and revived inflation worries, dulling expectations for near-term rate cuts. Spot gold was last down 0.4% at $4,809 in early Asian trade, after earlier dipping to its lowest since April 13, according to CNBC’s market report.
XAUUSD – 5 Days Chart
Market snapshot
The move came after gold had been supported last week by safe-haven demand tied to the Middle East conflict. By Monday’s Asian session, that bid had faded as traders reacted to news that the Strait of Hormuz had again become a flashpoint, pushing oil higher and pulling inflation expectations back into focus.
US gold futures for June delivery were down 1% at $4,829.40, underscoring the softer tone across the bullion complex.
Event details
The latest pressure on bullion stems from the direct market link between the Strait of Hormuz and energy flows. FXStreet said the tension in the waterway helped drive gold below $4,800, while a separate market note said higher oil prices were weighing on the metal by clouding the outlook for central bank easing.
That dynamic matters because gold tends to lose appeal when traders expect interest rates to stay elevated for longer. Higher oil can feed inflation fears, which in turn can delay policy easing and keep real yields supported, a negative backdrop for non-yielding bullion.
