<ul>
<li>Trump vows to strike Iran “extremely hard” over next few weeks</li>
<li>Gold slips after gaining for previous four sessions</li>
<li>Silver plummets more than 7%</li>
<li>US dollar advances; Brent surges over 6%</li>
</ul>
By Anmol Choubey and Pablo Sinha
April 2 (Reuters) - Gold fell sharply from two-week highs on Thursday after U.S. President Donald Trump said that Washington would continue its military campaign in Iran in the coming weeks, driving oil prices higher and dampening hopes of interest rate cuts. Spot gold (XAU=) declined over 2.8% at $4,622.59 per ounce, as of 0719 GMT, after falling over 4% earlier and snapping a four-day winning streak. U.S. gold futures (GCcv1) slid 3.4% to $4,649. The pullback followed bullion’s climb to its highest level since March 19, before Trump’s remarks. In a prime-time address, Trump said the U.S. would carry out aggressive strikes on Iran and was nearing “completion of its main strategic objectives” in the conflict. It disappointed investors who had hoped for clearer signals of an end to hostilities.
“It’s (gold’s slide) a clear reaction to (Trump’s) address and the risk of escalation potentially over the weekend… that’s pushed oil prices, U.S. dollar and yields higher, and naturally that’s pushed the gold price quite meaningfully lower,” said Kyle Rodda, a senior financial market analyst at Capital.com.
The 10-year U.S. Treasury yield and the dollar index both advanced, pressuring dollar-denominated gold. (USD/) (US/) (MKTS/GLOB) Meanwhile, Brent crude surged more than 6% after Trump indicated targeting of Iran’s energy infrastructure, raising supply concerns. (O/R) Gold had dropped 11% 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 U.S. rate cuts remain low through most of 2026. Bets for a December reduction have fallen to just 12%, down from around 25% before Trump’s latest comments. (FEDWATCH)
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. Gold traded at a premium in India this week for the first time in two months, as softer prices boosted demand for the metal, while premiums in China ticked down slightly as buyers awaited a deeper correction. (GOL/AS)
In other metals, spot silver (XAG=) fell 5.4% to $71.07 having earlier dropped over 7%, platinum (XPT=) fell 3.1% to $1,902.65 and palladium (XPD=) shed 1.8% to $1,446.53.

At 9 p.m. Eastern Time on Wednesday, Trump delivered a national address, claiming a "rapid and decisive victory" in the US military's war against Iran and stating that core strategic objectives were nearing completion. He emphasized that Iran would never be allowed to possess nuclear weapons and called the US strikes on Iranian nuclear facilities a "huge success." Regarding the Strait of Hormuz, Trump encouraged countries to "take responsibility for themselves" without providing a clear timetable for its reopening. Escalating tensions in the Middle East have put markets on edge, and the US military may intensify its strikes in the coming weeks. Will the US-Iran conflict end quickly as Trump hopes? How will the energy market evolve?

At 9 p.m. Eastern Time on Wednesday, Trump delivered a national address, claiming a "rapid and decisive victory" in the US military's war against Iran and stating that core strategic objectives were nearing completion. He emphasized that Iran would never be allowed to possess nuclear weapons and called the US strikes on Iranian nuclear facilities a "huge success." Regarding the Strait of Hormuz, Trump encouraged countries to "take responsibility for themselves" without providing a clear timetable for its reopening. Escalating tensions in the Middle East have put markets on edge, and the US military may intensify its strikes in the coming weeks. Will the US-Iran conflict end quickly as Trump hopes? How will the energy market evolve?

PRECIOUS-Gold prices slump as Trump threatens more attacks on Iran