HG MARKETS: 

Gold prices declined further during Monday’s Asian session, pressured by a sharp rebound in oil prices and a stronger U.S. dollar as geopolitical tensions between the United States and Iran intensified. Spot gold fell 0.9% to $4,786 per ounce, while gold futures declined 1.5% to $4,804 per ounce in early trading, extending recent losses.

Market sentiment shifted following renewed developments in the Middle East ahead of a potential ceasefire deadline later this week. Over the weekend, Iran reportedly moved to close the Strait of Hormuz, a key maritime corridor responsible for a substantial share of global oil transportation. The move raised concerns over potential supply disruptions and heightened volatility across global markets.

U.S. President Donald Trump stated that U.S. forces had fired on and captured an Iranian vessel attempting to bypass restrictions. He further said that U.S. envoys were being dispatched to Pakistan to engage in additional ceasefire discussions, signaling ongoing diplomatic efforts despite escalating tensions.

Oil markets reacted sharply to the developments, with prices surging by as much as 7% during Monday’s session. The increase reflects concerns over constrained supply flows through the Strait of Hormuz, a critical route linking major oil producers in the Middle East to global markets.

The rise in oil prices contributed to a broader strengthening of the U.S. dollar, with the dollar index posting modest gains in Asian trade. A firmer dollar typically exerts downward pressure on gold by increasing its cost for investors holding other currencies.

Despite the latest decline, gold remains within a relatively narrow trading band between $4,700 and $4,900 per ounce observed over recent sessions, indicating continued consolidation as markets assess geopolitical risks alongside broader macroeconomic conditions.

In the wider precious metals complex, silver declined 1.5% to $79.61 per ounce, while platinum fell 1.1% to $2,084 per ounce, tracking weakness in gold amid the stronger dollar environment. In other precious metals, silver declined 1.5% to $79.61 per ounce, while platinum fell 1.1% to $2,084 per ounce.