Gold fell from two-week highs on Thursday after US President Donald Trump said Washington would resume a military campaign in Iran in the coming weeks, sending crude oil prices sharply higher and dampening hopes of interest rate cuts.
Gold on the market fell 2 percent to $4,664.39 an ounce by 05:39 CET, snapping a four-day streak of gains, while U.S. gold futures fell 2.5 percent to $4,691.10.
The drop followed gold’s climb to its highest level since March 19, before Trump’s remarks.
In a prime-time address to the nation on Wednesday night, Trump said the United States would launch aggressive strikes against Iran in the next two to three weeks and was moving closer to “accomplishing its major strategic objectives” in the conflict.
– Gold is down after two excellent days, as President Trump has been quite belligerent in his tone, referring to aggressive plans for the coming weeks. This suggests that the optimism of the past few days has been exaggerated and that there will be some pullback ahead of the long weekend, said independent metals trader Tai Wong.
Markets reacted quickly: the yield on 10-year US government bonds and the dollar index rose, putting pressure on dollar-denominated gold, reports Fena.
Meanwhile, Brent crude rose more than six percent after Trump signaled continued attacks on Iran’s energy infrastructure, sparking supply concerns.
Gold was already under pressure, losing 11 percent in March, its worst monthly loss since 2008, following the outbreak of conflict with Iran on February 28.
A surge in oil prices has fueled inflation concerns, complicating the outlook for the Federal Reserve’s monetary policy.
Expectations for US interest rate cuts remain low through most of 2026.
Among other metals, the price of silver on the spot market fell by 4.6 percent to $71.67, platinum by 2.5 percent to $1,914.61, and palladium by 1.4 percent to $1,451.92, reports Reuters.
