Gold Holds Decline as Hormuz Quagmire Keeps Inflation Fear High

Gold held a decline as a lack of progress in reopening the Strait of Hormuz continued to fan inflation concerns that sent bond markets tumbling.

Bullion fell as much as 1.3% before paring most of the losses to trade around $4,535 an ounce, after retreating almost 4% last week. The US and Iran remained far apart on a deal to end weeks of war and reopen Hormuz, a vital waterway for energy flows that remains effectively closed. Oil climbed on Monday after President Donald Trump rewed threats against Iran, raising the odds of a rate hike that would weigh on non-yielding bullion.