Sharp Drop in Gold Prices After Trump's Threats to Iran

Gold Prices End Winning Streak After Trump's Speech

Gold prices dropped by more than 3.5% on Thursday, ending a four-day winning streak, following statements from U.S. President Donald Trump confirming continued military operations against Iran in the coming weeks.

Gold Decline in Spot and Futures Markets

Gold in the spot market fell by 3.51% to $4591.47 per ounce by 06:29 GMT, while U.S. gold futures dropped by 3.97% to $4622.10.

Previous Price Increase Before the Statements

Before Trump's speech, gold prices had risen by more than 1%, reaching their highest levels since March 19, according to Reuters, before sharply reversing direction after the statements.

New American Threats Impact Markets

Trump stated in a televised speech that the United States would strike Iran "very hard" in the next two to three weeks, adding that U.S. strategic objectives in the conflict were nearing completion, which heightened tensions in global markets.

Rising Oil Prices and Bond Yields Pressure Gold

At the same time, Brent crude prices rose by more than 4%, and U.S. ten-year Treasury yields and the dollar index also increased, negatively impacting gold, which is priced in dollars.

Severe Monthly Losses for Gold in March

Gold recorded a decline of 11% in March, marking its worst monthly performance since 2008, following the outbreak of war with Iran on February 28, which led to rising oil prices and increased inflationary pressures, adding uncertainty to the U.S. Federal Reserve's monetary policy path.

Decline in Other Precious Metals Prices

The decline was not limited to gold; prices of other precious metals also fell, with silver in the spot market down by 2.9% to $72.95, platinum down by 1.8% to $1928.26, and palladium down by 1.4% to $1451.85.