Gold steadied after a bond rout and deadlock in the Strait of Hormuz snapped a nascent uptrend. The precious metal held near session lows as a selloff in global bonds pushed yields higher, reducing the appeal of non-yielding bullion.

The Strait of Hormuz standoff added geopolitical complexity, with tensions over shipping lanes creating uncertainty for commodity markets. While gold typically benefits from geopolitical risk, the simultaneous bond selloff exerted stronger downward pressure.

Traders monitored U.S. Treasury yields, which climbed to multi-month highs, and the dollar index, which strengthened against major peers. Both factors historically weigh on gold prices, which trade inversely to real yields.

Market participants awaited clarity on Federal Reserve policy trajectory and Middle East developments. The $2,000 per ounce level remained a key technical threshold for bullion's next directional move.