Gold Hits Air Pocket — $56 Drop at Open as Hormuz Tensions Ease Momentarily

Gold encountered turbulence at Monday’s opening, losing $56 per ounce to touch $4,762 — its lowest point since mid-last week. The source of the air pocket: a weekend ceasefire agreement near the Strait of Hormuz combined with a firm US dollar on the back of stronger-than-expected economic data. For those who have tracked gold through its extraordinary 2026 run, this type of short-term correction is well within the expected range.

The broader context of gold’s 2026 journey is remarkable by any measure. The metal broke through $3,000, then $4,000, then briefly touched an all-time record of $5,595 per ounce in January — all within a single calendar year. It then corrected approximately 15% as the oil shock from Gulf tensions created a paradoxical drag: higher oil meant higher inflation, which the Federal Reserve would need to combat with higher rates, temporarily reducing gold’s appeal. The metal then recovered, posting four consecutive weeks of gains before today’s pullback.

The global gold jewellery market has been particularly active during this period of price volatility. Consumption led by India, China, and the UAE tends to accelerate on price dips, as consumers and collectors treat corrections as buying opportunities. The Dubai and Abu Dhabi gold markets saw elevated activity last week as gold approached $4,878; analysts expect similar behaviour now that prices have pulled back to $4,762.

From an investment standpoint, gold’s current level sits approximately 15% below its all-time high of $5,595. Institutional consensus forecasts from J.P. Morgan ($5,055 by Q4 2026) and Goldman Sachs ($6,000 by end 2027) both imply significant upside from today’s opening price.

Today’s prices: 24K — $153.20/gram | 22K — $140.44/gram | 18K — $114.90/gram All prices USD. Indicative at market open. Subject to change throughout the trading day.