Gold Prices Drop 1% on U.S.-Iran Tensions

Gold prices dropped more than 1 percent on Monday, April 20, 2026, as renewed tensions between the United States and Iran disrupted shipping in the Strait of Hormuz and drove up oil prices, fueling concerns over persistent global inflation. Spot gold fell to around 4,784 per ounce, a decline of about 1 percent from the previous session, while U.S. gold futures for June delivery slid 1.4 percent to 4,813.60 per ounce.

The sell-off reversed brief optimism from the prior week, when Iran had signaled the reopening of the Strait of Hormuz to commercial shipping during a temporary ceasefire. That move had eased energy supply fears and supported a rally in precious metals. However, the situation deteriorated over the weekend after the U.S. Navy seized an Iranian-flagged cargo vessel in the Gulf of Oman, prompting Tehran to reimpose restrictions on the vital waterway. Iranian officials warned that vessels entering the area could be treated as violating ceasefire terms, forcing several ships to retreat. President Donald Trump confirmed the seizure and stated that U.S. negotiators would travel to Islamabad, Pakistan, for further talks, though progress appeared limited.