Why is gold declining? Gold is essentially currency, but if expectations are that the strait will remain blocked indefinitely, you can't buy goods anymore, so currency naturally becomes useless. It's clear that in such circumstances, oil becomes more important. But buying oil requires US dollars, not gold, so gold declines, oil rises, and the US dollar appreciates. However, gold as a US dollar alternative is a long-term narrative. Once expectations shift that the strait will reopen, gold will rise again.