US-Iran blockade risks push Gold toward a $60 bearish gap

Gold is re-attempting $4,700 as it looks to fill a $60 bearish opening gap. The price decline is driven by a surge in the US Dollar, which has gained appeal as a safe-haven asset and the world's reserve currency. The US Dollar's strength is underpinned by hawkish expectations for the Federal Reserve's interest rate outlook. These expectations are reviving bets for a rate hike this year, fueled by the risk of higher inflation resulting from potential disruptions to the global oil supply. The risk of oil supply disruption arises from US naval action around the Strait of Hormuz. US Central Command announced a blockade of all maritime traffic entering and exiting Iranian ports starting Monday at 10 AM ET. This follows the failed peace talks between the US and Iran in Pakistan over the weekend. US President Donald Trump threatened blockades in the Strait of Hormuz and attacks on Iranian civilian energy infrastructure.