Gold Falls as Oil Prices Surge on Hormuz Tensions

The price of gold fell in early trade on Monday as tensions around the Strait of Hormuz continued to support oil prices. The situation remained uncertain, with US President Donald Trump rejecting a seven-day proposal from Iran to reopen the chokepoint.

Oil prices rose more than 1% at the open, and traders are watching actual tanker movements through the strait rather than relying on rhetoric alone. Trump also stated that a 'record' volume of oil had passed through the strait on Saturday night, but this claim still needs independent confirmation.

The regional backdrop remained tense over the weekend, with the Saudi-led coalition in Yemen intercepting a Houthi drone bound for Riyadh and a missile aimed at Khamis Mushait. This underlined how quickly the standoff could escalate and disrupt supply.