Global Gold Prices Plunge 1.9%, Strait of Hormuz Tensions Spark Market Volatility

Global gold prices fell sharply in early trading this week, as tensions in the Middle East heated up again. Citing Bloomberg, on Monday morning (20/4/2026), the spot gold price was recorded at around $4,740 per troy ounce, down about 1.9% from last week’s close. This decline also wiped out the previous week’s gold price increase. The weakening of gold prices occurred after a ship shooting incident in the Strait of Hormuz, which sparked new concerns about disruptions to global energy supplies. As a result of the situation, several ships were forced to cancel voyages just hours after Iran previously declared the Strait of Hormuz “fully open”. On the ground, the tension also affected shipping activities. One vessel owned by Pertamina International Shipping managed to cross the strait when the route was open. However, conditions changed again after Iran confirmed that the Strait of Hormuz was closed due to ongoing conflict, including Israel’s attacks in Lebanon. Geopolitical tensions immediately caused global financial markets to become volatile. Investors who previously sought refuge in gold began to liquidate their positions. Capital.com analyst Kyle Rodda stated that war-driven trading was once again dominating the market, leading to gold being sold off by investors. “War sentiment-based transactions are occurring again, which means gold is being released,” he said. He added that current market movements are heavily influenced by news developments, potentially leading to high two-way volatility in a short time. This surge in energy prices strengthens global inflation concerns, especially if the conflict continues and disrupts oil distribution from the Middle East region. Such conditions could lead central banks to hold interest rates high for longer, even opening the door for further increases.