Gold prices dropped sharply from two-week highs on Thursday after US President Donald Trump said Washington would continue its military campaign in Iran in the coming weeks, lifting oil prices and dampening expectations of interest rate cuts.
Spot gold fell more than 2.8% to $4,622.59 per ounce as of 0719 GMT, after declining over 4% earlier and snapping a four-day winning streak. US gold futures slipped 3.4% to $4,649, Reuters reported.
The decline followed bullion’s rise to its highest level since March 19, prior to Trump’s remarks.
In India, gold traded at a premium this week for the first time in two months as lower prices boosted demand, while premiums in China edged down slightly as buyers waited for a deeper correction.
Trump’s address disappointed investors who had hoped for clearer signs of de-escalation, leading to a clear reaction in gold prices.
The 10-year US Treasury yield and the dollar index both moved higher, putting pressure on dollar-denominated gold.
Brent crude surged more than 6% after Trump indicated potential targeting of Iran’s energy infrastructure, raising concerns about supply disruptions.
Expectations for US rate cuts remain subdued through most of 2026, with bets for a December cut dropping to just 12% from around 25% before Trump’s latest remarks.
Among other metals, spot silver fell 5.4% to $71.07 after earlier dropping more than 7%, platinum declined 3.1% to $1,902.65, and palladium lost 1.8% to $1,446.53.
