Abu dhabi: Gold prices experienced a significant decline of 3% on Monday, following US President Donald Trump's announcement of reinstating a naval blockade on Iran. This geopolitical move has contributed to a recovery in oil markets.

According to Emirates News Agency, gold notably dropped below the critical $4,000 per ounce level, marking its lowest point since July 1st. The US gold futures for August delivery also saw a decrease of 2.6%, settling at $4005.7.

In the realm of other precious metals, the market witnessed declines as well. Silver prices fell by 3.8% to $57.55 per ounce. Platinum experienced a reduction of 1.7%, bringing its price to $1,599.47. Meanwhile, palladium saw a decrease of 2.1%, with its price at $1,249.70 per ounce.