Spot gold prices climbed sharply on Monday as markets digested reports that US President Donald Trump has ordered the reinstatement of a naval blockade on Iranian ports.
The move marks a significant escalation in tensions surrounding the Strait of Hormuz, immediately triggering a flight to safety in precious metals and raising concerns over global energy supply chains.
Bloomberg reported that the announcement has drawn fresh investor attention to Australian gold producers, whose output is increasingly viewed as a critical alternative supply source amid Middle East instability.
The repricing in gold reflects a broadening risk-off sentiment, with investors hedging against potential disruptions to oil flows through the Strait of Hormuz.
While specific price levels were not disclosed in the initial reports, the direction of trade was unequivocally bullish for bullion, extending the upward momentum seen in recent sessions.
The market reaction underscores the persistent sensitivity of commodity prices to geopolitical shocks in the region, particularly when US policy shifts toward direct military containment.