Gold Price Breaks Below $4,000 as US Dollar Hits 13-Month High

Gold (XAU/USD) plunged more than 3% during the North American session, breaking below the $4,000 mark for the first time in recent weeks. The selloff was driven by broad US Dollar strength, which pushed the greenback to a 13-month high.

Meanwhile, US Treasury yields dropped sharply as market participants priced in the potential reopening of the Strait of Hormuz, a move that could alleviate inflationary pressures by improving oil supply routes. The contrasting moves highlight a flight to the Dollar rather than a risk-off rotation into gold.