FX.co ★ Gold Holds Decline as Trump Reinstates Blockade

Gold hovered just below $4,000 an ounce on Tuesday, stabilizing after a nearly 3% slide in the previous session. The pullback came as President Donald Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz and demanded reimbursement from countries that benefit from US efforts to secure the strategic waterway. The decision sent oil prices sharply higher, reigniting concerns about inflation and the future path of interest rates.

The latest measures followed a renewed escalation in tensions between Washington and Tehran, with the United States targeting Iran’s capacity to disrupt maritime shipping and Tehran responding with actions against US allies in the region. Investors also turned their attention to upcoming US inflation data and Federal Reserve Chair Kevin Warsh’s testimony before Congress later today, with markets set to scrutinize his comments for fresh policy signals. Current market pricing reflects roughly a 51% probability of a Fed rate hike in September, compared with about a 23% chance that the central bank will keep rates on hold.