Gold Prices Dip as Trump Blockades Iranian Shipping

Spot gold hit a two-week low on July 14, 2026, before partially recovering to over $4,000 per ounce. The volatility follows a nearly 3% drop in the previous session, the metal's steepest daily decline in over a month. Investors are balancing traditional safe-haven demand against a stronger U.S. dollar and an oil-driven inflation shock.

Donald Trump drove the market instability by reinstating a U.S. blockade on Iranian shipping in the Gulf and proposing a 20% charge on cargo passing through the Strait of Hormuz. These actions, alongside three consecutive nights of U.S. military strikes against Iran, pushed crude oil prices to their highest level since mid-June.

This surge in energy costs heightened fears of persistent inflation, prompting Federal Reserve Governor Christopher Waller to suggest that the central bank may need to raise interest rates if inflation remains well above the 2% target. Consequently, traders increased the probability of a September rate hike to approximately 75% to 78%. Investors are now awaiting the June Consumer Price Index report and congressional testimony from Federal Reserve Chair Kevin Warsh for further policy signals.

In a separate geopolitical development, the European Union announced new sanctions on Sudan's gold trade on Monday to disrupt the financing of the country's military conflict.