The price of gold fell as the escalation of tension in the Strait of Hormuz and the remarks of a Federal Reserve official raised the possibility of raising interest rates to curb inflation. Spot gold has now fallen back below $4,000 per ounce; it fell nearly 3% on Monday, the biggest drop in more than two weeks. After the US military re-imposed a maritime blockade on Iranian ports and opened fire for several days, US President Donald Trump proposed 20% compensation for goods transported through this waterway. Oil prices have risen further, and the resurgence of smoke in the Middle East has once again raised concerns about crude oil supply in the region. High energy prices have boosted expectations that the Federal Reserve may need to keep interest rates high for a longer period of time to cope with stubborn inflation.

The price of gold fell as the escalation of tension in the Strait of Hormuz and the remarks of a Federal Reserve official raised the possibility of raising interest rates to curb inflation. Spot gold has now fallen back below $4,000 per ounce; it fell nearly 3% on Monday, the biggest drop in more than two weeks. After the US military re-imposed a maritime blockade on Iranian ports and opened fire for several days, US President Donald Trump proposed 20% compensation for goods transported through this waterway. Oil prices have risen further, and the resurgence of smoke in the Middle East has once again raised concerns about crude oil supply in the region. High energy prices have boosted expectations that the Federal Reserve may need to keep interest rates high for a longer period of time to cope with stubborn inflation.