Gold prices slipped on Thursday after U.S. President Donald Trump said the United States would continue the war in Iran over the coming weeks.
Georg Hochmuth | Afp | Getty Images
Gold prices reversed course to slip more than 1% on Thursday, snapping a four-day winning streak, after U.S. President Donald Trump said the United States would continue the war in Iran over the coming weeks.
Spot gold fell 1.3% at $4,694.48 per ounce by 0202 GMT, while U.S. gold futures slid 1.9% to $4,723.70. Prices were up over 1% at their highest levels since March 19 before Trump’s remarks.
The United States would strike Iran “extremely hard” over the next two to three weeks and push it back into the “Stone Ages,” Trump told the nation in a televised speech, adding that U.S. strategic objectives in the conflict were close to being fulfilled.
“Gold is pulling back after two superb days, as President Trump was quite bellicose in his tone, referring to aggressive plans over the coming weeks… it suggests the optimism of the last few days was overexuberant and there will be some retracement ahead of the long weekend,” said independent metals trader Tai Wong.
Brent oil prices surged by more than 4%, while the 10-year U.S. Treasury yield and the dollar index advanced, weighing on the greenback-priced metal.
The metal dropped 11% in March, its worst monthly loss since 2008, after the onset of the conflict in Iran on February 28, which has driven oil prices higher and added to inflation pressures, clouding the Fed’s path for monetary policy.
Fed rate‑cut expectations remain low through most of 2026, with markets largely pricing in no change until a modest 25% chance of a cut emerges at the December meeting.
Despite gold’s appeal during periods of inflation and geopolitical tension, higher interest rates tend to curb bullion’s attractiveness by increasing the opportunity cost of holding the non‑yielding asset.
St. Louis Federal Reserve President Alberto Musalem said on Wednesday there is no need for the U.S. central bank to change its interest rate stance at this time amid rising inflation risks.
In other metals, spot silver fell 2.9% to $72.95, platinum dropped 1.8% to $1,928.26 and palladium shed 1.4% to $1,451.85.
