SINGAPORE: Gold prices fell more than 1% on Thursday, snapping a four-day winning streak, after U.S. President Donald Trump pledged fresh military action against Iran in the coming weeks, while oil prices surged on fears of escalating conflict.
Spot gold dropped 1.3% to $4,694.48 per ounce by 0202 GMT, retreating from its highest levels since March 19. U.S. gold futures slid 1.9% to $4,723.70. Prices had earlier gained more than 1% before Trump’s remarks.
“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.
In a televised address, Trump said the United States would strike Iran “extremely hard” within two to three weeks and push it “back into the Stone Ages,” adding that U.S. strategic objectives in the conflict were close to being fulfilled.
Oil markets rallied sharply on the comments. U.S. West Texas Intermediate crude futures for May were last down 1.8% at $103.08 a barrel, after briefly touching $104.23 earlier in the session. International benchmark Brent crude for June jumped 5% to $106.42, in line with gains seen across the market.
Trump attributed the rise in oil prices to “Iranian regime launching deranged terror attacks against commercial oil tankers and neighboring countries that have nothing to do with the conflict.”
The twin moves underscored investor unease over Middle East tensions, with bullion retreating from safe-haven highs and crude climbing on supply fears.
