Gold Drops 12% Since Late February as Hormuz Plan and Rate Fears Weigh
GLD fell 0.9% to about $4,575 an ounce Monday, extending its 12% drop since late February as US plans to guide ships through the Strait of Hormuz and potential US-Iran accords reduce bullion’s safe-haven appeal. Rising oil prices and a stronger dollar have boosted hawkish central-bank signals.
1. Monday Price Movement
Gold ETF GLD declined 0.9% Monday, trading near $4,575 an ounce in early European hours. This move extended a second straight weekly loss, reflecting sustained selling pressure from geopolitical and monetary factors.
2. Key Drivers of Decline
US plans to begin guiding non-conflict ships through the Strait of Hormuz and hints of progress on a US-Iran deal have dampened safe-haven demand. Elevated oil prices and a firmer dollar have reinforced hawkish signals from major central banks, pressuring non-yielding bullion.
3. Longer-Term Outlook
Despite recent weakness, central banks added gold holdings at the fastest pace in over a year during Q1, while large private buyers have continued purchasing. Upcoming US Treasury borrowing plans, Fed speakers and employment data could provide fresh catalysts for gold’s next move.