Gold falls as Trump gives no clarity on ending Iran war 

Published Thu, Apr 2, 2026 · 11:09 AM

GOLD prices reversed course to slip more than 1 per cent on Thursday, snapping a four-day winning streak, after US President Donald Trump said the United States would continue the war in Iran over the coming weeks.

Spot gold fell 1.3 per cent at US$4,694.48 per ounce by 0202 GMT, while US gold futures slid 1.9 per cent to US$4,723.70. Prices were up over 1 per cent 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 US 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 per cent, while the 10-year US Treasury yield and the dollar index advanced, weighing on the greenback-priced metal.

The metal dropped 11 per cent in March, its worst monthly loss since 2008, after the onset of the conflict in Iran on Feb 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 per cent 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 US central bank to change its interest rate stance at this time amid rising inflation risks.

In other metals, spot silver fell 2.9 per cent to US$72.95, platinum dropped 1.8 per cent to US$1,928.26 and palladium shed 1.4 per cent to US$1,451.85. REUTERS