Why is gold falling? Gold is essentially currency, but if the strait is expected to remain blocked continuously, you can't buy goods anymore, so currency naturally becomes useless. Obviously in such times, oil is more important, but buying oil requires US dollars rather than gold, so gold falls, oil rises, and the US dollar rises. However, gold as a substitute for the US dollar is a long-term narrative. Whenever expectations emerge that the strait will reopen, gold will rise.
Why is gold falling? Gold is essentially currency, but if the strait is expected to remain blocked continuously, you can't buy goods anymore, so currency naturally becomes useless. Obviously in such times, oil is more important, but buying oil requires US dollars rather than gold, so gold falls, oil rises, and the US dollar rises. However, gold as a substitute for the US dollar is a long-term narrative. Whenever expectations emerge that the strait will reopen, gold will rise.