Gold Holds Gains as Hormuz Blockade Fuels Inflationary Fears

Gold prices remained steady in early trading, hovering around $4,735 an ounce, as global investors continue to hedge against systemic risks stemming from the blockage of the Strait of Hormuz. The asset added 0.4% in the previous session, effectively halting a two-day decline. The persistence of the maritime blockade has heightened concerns over global energy security and fueled expectations of sustained inflationary pressure. This environment has provided a strong floor for bullion prices, as traders seek safety amid geopolitical instability. President Donald Trump announced that the ceasefire established on April 7 will be extended indefinitely. The U.S. administration stated that Washington is currently awaiting a new peace proposal from Iran to resolve the standoff and restore regional stability. However, the diplomatic outlook remains bleak. Tehran has indicated that it has no immediate plans to participate in negotiations, leaving the geopolitical situation in a state of precarious equilibrium. The combination of energy supply uncertainty and the lack of a clear diplomatic exit strategy continues to support the appeal of gold as a primary safe-haven asset against potential economic shocks.