Gold prices fall as Trump gives no clarity on ending Iran war

Gold prices fell more than 1% on Thursday, ending a four-day increase, as U.S. President Donald Trump announced that the United States would continue its military actions in Iran in the coming weeks. Spot gold dropped by 1.3%, bringing the price to $4,694.48 per ounce by 0202 GMT, while U.S. gold futures decreased by 1.9% to $4,723.70. Prior to Trump’s comments, gold prices had risen over 1% to their highest levels since March 19. In a televised address, Trump warned that the U.S. would hit Iran “extremely hard” in the next two to three weeks and would push the country back into the “Stone Ages.” He also mentioned that U.S. goals in the conflict were nearly achieved. Independent metals trader Tai Wong noted, “Gold is pulling back after two strong days, as President Trump’s aggressive tone suggests a correction after the recent optimism, especially ahead of the long weekend.” Meanwhile, Brent oil prices surged over 4%, and both the 10-year U.S. Treasury yield and the dollar index rose, putting pressure on gold, which is priced in dollars. In March, gold experienced an 11% drop, marking its worst monthly loss since 2008, following the start of the conflict in Iran on February 28. This situation has led to rising oil prices and increased inflation concerns, complicating the Federal Reserve’s monetary policy decisions. Expectations for a rate cut by the Fed remain low through most of 2026, with markets anticipating no changes until there is a modest 25% chance of a cut at the December meeting. Although gold is often seen as a safe haven during inflation and geopolitical unrest, higher interest rates typically decrease its appeal by raising the opportunity cost of holding a non-yielding asset. St. Louis Federal Reserve President Alberto Musalem stated on Wednesday that the U.S. central bank does not need to adjust its interest rate policy right now due to the rising inflation risks.