Gold retreated from two-week highs on Thursday after US President Donald Trump said that Washington would continue its military campaign in Iran in the coming weeks, pushing crude prices sharply higher and dampening hopes of interest rate cuts.
Spot gold was down 2 per cent at $4,664.39 per ounce, as of 0439 GMT, snapping a four-day winning streak, while US gold futures slid 2.5 per cent to $4,691.10.
The pullback followed bullion’s climb to its highest level since March 19, prior to Trump’s remarks.
In a prime-time address to the nation late on Wednesday, Trump said the United States would carry out aggressive strikes on Iran over the next two to three weeks and was nearing “completion of its main strategic objectives” in the conflict.
“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 exuberant and there will be some retracement ahead of the long weekend,” independent metals trader Tai Wong said.
Markets reacted swiftly: the 10-year US Treasury yield and the dollar index both advanced, pressuring dollar-denominated gold.
Meanwhile, Brent crude surged more than 6 per cent after Trump indicated continued targeting of Iran’s energy infrastructure, raising supply concerns.
Gold had already been under pressure, dropping 11 per cent in March, its worst monthly performance since 2008, following the outbreak of the Iran conflict on February 28. The surge in oil prices has fuelled inflation concerns, complicating the Federal Reserve’s monetary policy outlook.
Expectations for US rate cuts remain low through most of 2026. Bets for a December reduction have fallen to just 12 per cent, down from around 25 per cent before Trump’s latest comments.
While gold typically benefits during periods of inflationary pressure and geopolitical tension, higher interest rates reduce its appeal by increasing the opportunity cost of holding the non-yielding asset.
In other metals, spot silver fell 4.6 per cent to $71.67, platinum dropped 2.5 per cent to $1,914.61 and palladium shed 1.4 per cent to $1,451.92.
Published on April 2, 2026