Gold Drops on Ongoing U.S.-Iran Standoff and Hormuz Closure

Gold prices declined Tuesday, May 26, 2026, as investors assessed the protracted U.S.-Iran confrontation and the continuing closure of the Strait of Hormuz. The lack of immediate military action prompted some safe-haven unwinding, eroding bullion's appeal. August gold futures fell 0.8% to settle at $2,345.60 per troy ounce on the Comex. Analysts said the standoff has already been largely priced in, and traders are now focusing on the strengthening U.S. dollar and potential diplomatic breakthroughs. The Hormuz blockage, which has disrupted a fifth of the world's oil supply since early May, has provided only intermittent support to gold. "Gold's safe-haven bid is fading as markets grow accustomed to the geopolitical stalemate," said a senior commodity strategist. "Without a fresh catalyst, prices may test lower support levels."