After Trump vows naval blockade, gold down nearly 14%
Gold prices have taken a hit after President Trump vowed to maintain a naval blockade on Iran, adding more fuel to already tense U.S.-Iran relations.
The ongoing nine-week conflict has disrupted energy supplies and pushed inflation risks higher, making central banks rethink interest rates.
After a brief jump, gold dropped 1.2%, and overall, it's down nearly 14% since February.
Central banks accelerate gold purchases
Even with prices falling, central banks aren't shying away from buying gold—in fact, they're snapping it up at the fastest pace in over a year.
The World Gold Council says this is helping balance out some big institutional sales.
Greg Shearer from JPMorgan Chase & Co. notes that strong buying in China and by central banks points to a pretty optimistic outlook for gold's future.
Right now, spot gold sits at $4,569.30 an ounce in London.