Gold prices experienced a significant decline, falling as much as 2.2% to below $4,650 an ounce due to rising inflation concerns triggered by the US's decision to blockade the Strait of Hormuz. This move follows unsuccessful peace negotiations with Iran, which have heightened fears of a prolonged conflict in the region. The blockade is expected to disrupt global energy supplies, as the Strait is a critical maritime chokepoint through which a fifth of the world’s crude and liquefied natural gas passes. Consequently, oil and natural gas prices surged, further raising inflationary risks. Analysts noted that this situation could lead central banks to delay interest rate cuts or even consider hikes, negatively impacting non-yielding assets like gold. Despite these challenges, some analysts believe that gold may find support due to concerns about slowing economic growth. As of 10:01 a.m. in Singapore, spot gold was down 0.6% at $4,723.55 an ounce, while silver and platinum also saw declines.