Gold Futures Drop as U.S.-Iran Standoff Delays Strait of Hormuz Reopening

Gold prices tumbled on Monday, June 1, 2026, as the U.S.-Iran standoff continued, delaying the reopening of the Strait of Hormuz and erasing geopolitical risk premiums. The safe-haven asset slid 1.4%, with August gold futures settling at $2,148.20 per ounce on the Comex, reversing gains from late May. The strategic waterway, which handles roughly 20% of global oil trade, has been partially blocked since May 25 following a naval incident. While initial fears of a supply crunch pushed gold to a two-week high, the prolonged impasse has dampened investor sentiment. Market analysts said the lack of progress is fueling concerns about economic drag, reducing demand for non-yielding bullion. Silver also declined, dropping 2.1% to $27.31 per ounce.