What happened
Gold futures climbed to US$4,445.30 an ounce following a 0.6% fall in US retail sales and an 8% drop in consumer sentiment. Geopolitical risks intensified as commercial shipping through the Strait of Hormuz effectively ground to a halt, with only five commodity vessels passing over a weekend compared to 31 previously.
Why it matters here
Stalled shipping through key energy chokepoints fuels crude oil spikes and global inflation anxiety, driving investors toward safe-haven assets. For Australian portfolios, unhedged gold exposure offers strategic diversification against equity volatility and local currency fluctuations when global trade disruption looms.
What to watch
Watch the upcoming Federal Reserve meeting minutes release, US dollar index shifts, and daily commercial vessel transit figures through the Strait of Hormuz.
Source
aceinvestors.com.au