Spot gold ended its four-day advance and moved lower in Asian trading Thursday after comments from the U.S. President indicated the country would intensify military operations against Iran in the near term. By 22:21 ET (02:21 GMT), spot gold had fallen 1.4% to $4,693.12 per ounce, after earlier in the session reaching as high as $4,800.58 per ounce.
U.S. Gold Futures also declined, off nearly 2% to $4,721.80 per ounce as markets digested the shift in rhetoric. Sentiment among traders changed noticeably after the televised address.
In that address, the President said the United States would ramp up military operations against Iran over the next "two to three weeks," framing the action around preventing Tehran from obtaining nuclear weapons. He added: "We're going to hit them extremely hard over the next two to three weeks. We're going to bring them back to the Stone Ages where they belong." The remarks followed earlier comments this week suggesting the U.S. could withdraw within a similar timeframe even without a formal agreement, marking a reversal in tone.
Markets have shown high sensitivity to shifting rhetoric on the Iran conflict, with investors recalibrating geopolitical risk assessments as statements emerge. Oil prices rebounded following the speech, reinforcing concerns about potential inflationary pressures. Those inflationary pressures, in turn, could contribute to expectations that interest rates remain elevated, which tends to weigh on the attractiveness of non-yielding assets such as gold.
Currency movements also reflected the change in sentiment. The U.S. dollar rose after two sessions of losses, making dollar-priced bullion more expensive for holders of other currencies and further pressuring demand for gold.
Precious metals beyond gold were similarly affected. Silver declined 3.2% to $72.77 per ounce, while platinum fell 1.7% to $1,934.60 per ounce.
Market participants are also awaiting U.S. jobs data on Friday for additional cues on the Federal Reserve's policy outlook. Fed policy expectations remain a primary influence on bullion prices, and upcoming economic data could help determine whether interest-rate expectations shift again.
Contextual note: The market moves described reflect immediate reactions to the presidential remarks, associated shifts in oil and currency prices, and investor focus on the Fed policy backdrop as signaled by forthcoming jobs data.