Gold Declines as Hormuz Impasse Keeps Rate-Hike Bets Elevated

Gold prices dropped over 1% following a weekly decline, as an impasse over the Strait of Hormuz kept energy costs high. This situation maintained pressure on the Federal Reserve to implement further interest rate hikes to combat sticky inflation. Simultaneously, Japan's two-year government bond yield is approaching the 2% threshold. This movement occurs as investors increase their bets on additional rate hikes from the Bank of Japan to manage the current economic landscape.