Gold Opens $50 Lower — Ceasefire Trims Fear Premium But Gulf Risks Remain Live

Gold fell approximately $50 per ounce at Monday's open, slipping to $4,765 as markets digested news of a 10-day ceasefire near the Strait of Hormuz. The precious metal had been trading near a weekly high of $4,878 as recently as last Thursday, buoyed by escalating tensions between the US naval presence in the Gulf and Iranian maritime threats. The weekend announcement reversed that momentum in one move.

Yet the details of the ceasefire leave significant uncertainty on the table. Iran's maritime authorities confirmed that vessels must use a government-approved coordinated route to transit the strait — a condition that effectively keeps Tehran in partial operational control of one of the world's most strategically critical waterways. The US has stated its naval blockade remains in full force. This is not de-escalation; it is a managed pause with conditions attached.

Gold has now posted four consecutive weeks of gains prior to today's dip — a streak that reflects deep structural investor conviction in the metal. Year-on-year, gold is up 39.3%. The metal broke through $3,000, $4,000, and even $5,000 within a single calendar year for the first time in history. State Street's base case for year-end remains $4,750–$5,500 per ounce, with their bull scenario extending to $5,500–$6,250.

UAE gold souks saw elevated retail foot traffic through last week as prices held near $4,800. Industry observers expect any near-term dip to be met with increased buying from both consumers and investors.

Today's prices: 24K — $153.20/gram | 22K — $140.44/gram | 21K — $134.05/gram Prices in USD. Indicative only. Please verify in store.