Gold Extends Selloff as Larak Strike Boosts Oil Prices

The ongoing conflict in the Strait has led to a six-month disruption of normal shipping. Despite diplomatic efforts, no breakthrough has resulted in reliable passage through the region. The Larak Island strike has lifted oil prices, while gold extends its selloff from Friday. Gold broke below $4,440 in the overnight session and failed to regain the low $4,460s on a bounce.

Crude opened higher due to the strike, and the 10-year yield remains at 4.72%. The dollar has not weakened, moving against gold simultaneously. The $40 trillion refinancing burden is supporting gold's buying interest after rate-driven breaks.

Monday's regular session will be a crucial test for gold prices. The overnight range was established on thin volume, and the market is awaiting contributions from New York and London. The 200-day moving average is overhead, with gold sitting at the 61.8% retracement level.