Gold price retraces last week's gains as the US plan to blockade the Strait of Hormuz exacerbates inflation risks.

Inflation concerns intensify and push down gold prices, as previous peace talks between the US and Iran have failed, and the US plans to blockade the Strait of Hormuz, intensifying global energy supply shocks. Gold prices fell by 2.2% at one point, dropping below $4650 per ounce, wiping out last week's gains. As the Middle East region descends into war for six weeks, the US and Iran held talks over the weekend, but failed to turn the fragile ceasefire into a lasting peace agreement. The US military said it would begin blockading the Strait of Hormuz at 10 am Eastern Time on Monday.