Gold Prices Fall as Trump’s Iran War Remarks Cloud Market Direction

Gold Prices Fall as Trump’s Iran War Remarks Cloud Market Direction​

Bullion Slips After Lack of Clear Resolution Signals​

Gold prices declined sharply after US President Donald Trump’s latest address failed to provide clarity on the resolution of the ongoing Middle East conflict. The uncertainty surrounding the Iran war weighed on bullion, reversing earlier gains during the session.

Gold Reverses Gains Amid Escalating War Signals​

Bullion dropped as much as 2.3% after initially rising, as Trump indicated that while the conflict was nearing completion, the US would strike Iran “extremely hard” over the next two to three weeks. In his primetime speech, he also noted that military objectives were close to being achieved, while urging countries dependent on Middle Eastern oil to address disruptions caused by the near-closure of the Strait of Hormuz.

Strong Dollar and Rising Oil Prices Pressure Gold​

Financial markets reacted sharply to the mixed signals. Equities declined, while a gauge of the US dollar rose up to 0.3%. At the same time, oil prices surged due to continued concerns over supply disruptions through the Strait of Hormuz, a critical route that previously handled a significant share of global oil and liquefied natural gas flows.

This combination of rising oil prices and a stronger dollar added pressure on gold, reducing its appeal as a safe-haven asset. Investors also appeared to liquidate positions in bullion to cover losses in other asset classes, further dragging prices lower.

Market Momentum Weakens After Recent Rally​

Gold’s decline on Thursday threatens to break its four-day winning streak. The metal had recently surged to an intra-session high of $4,800, supported by expectations that the Federal Reserve might consider cutting interest rates in response to prolonged geopolitical risks.

However, shifting expectations and persistent inflation concerns linked to elevated oil prices have dampened those rate-cut hopes, weakening gold’s momentum.

March Decline Highlights Broader Pressure​

Gold had already faced significant pressure in March, recording a nearly 12% drop, its worst monthly performance since October 2008. The decline reflected growing concerns that higher energy prices could sustain inflation, limiting the scope for monetary easing.

Latest Gold and Precious Metals Prices​

Spot gold fell 1.2% to $4,703.18 an ounce as of 10:07 a.m. Singapore time. Other precious metals also declined, with silver dropping 2.8% to $72.98, while platinum and palladium registered losses. The Bloomberg Dollar Spot Index rose 0.2%, reflecting continued strength in the US currency.