Trump's one statement triggers a surge in gold bulls! Trump hints that the Iran war will end, causing gold prices to spike nearly $58 at one point.

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Source: 24K99

On Wednesday (April 1) during the Asian session, gold prices continued their three-day uptrend. This was driven by signals that a Middle East war might be nearing an end, causing traders’ focus to shift from rate hikes to more long-term risks of economic downturn.

(Screenshot source: Bloomberg)

Spot gold prices once rose by 1.2%, breaking through $4,700 per ounce. Building on a further advance after the previous trading day’s jump of 3.5%, prices continued higher. U.S. President Donald Trump said he expects the U.S. to end the war with Iran within two to three weeks and suggested that the U.S. has basically achieved its military objectives; the next step, he implied, would be for other countries to handle the reopening of the Strait of Hormuz.

On Tuesday at the White House, Trump told reporters: “I’d say within two weeks—maybe two weeks, maybe three weeks. We’re going to leave because there’s no reason for us to keep doing this.”

Trump added that during this period, Iran might still reach an agreement with the U.S., but he said the war can end even without an agreement with Tehran. Trump said that when Iran cannot obtain nuclear weapons, the U.S. will withdraw, and claimed that the current administration is better than the leadership before the war.

Affected by Trump’s remarks, Asian stock markets rose on Wednesday, while the U.S. dollar weakened. Spot gold prices surged as high as $4,724.31 per ounce, with an intraday gain of nearly $58.

(Screenshot source: Bloomberg)

Bond traders are reducing their bets that central banks will raise rates to curb inflation risks triggered by the conflict, and instead are focusing on the impact of the war on economic growth. Earlier this week, Federal Reserve Chair Jerome Powell said long-term inflation expectations remain stable.

Yuxuan Tang, head of Asia interest rate and foreign exchange strategy at JPMorgan Private Bank, said: “When the market narrative shifts from inflation to growth risks, gold’s safe-haven attributes often come back into view.” She added: “We are highly confident that the room for Fed rate hikes in this cycle is limited,” and will pay more attention to a tightening labor market. Lower interest rates are supportive for gold because gold itself does not generate interest income.

Despite a rebound in the past few days, gold prices fell nearly 12% in March on a cumulative basis, marking the worst single-month performance since October 2008. The Middle East war, now in its fifth week, has disrupted global markets and has also suppressed the supply of energy and other commodities, raising fears of a surge in inflation. At one point, those fears outweighed gold’s appeal as a traditional safe-haven asset.

However, Goldman Sachs is still one of the institutions that remains bullish on gold. In a report released on Tuesday, analysts Lina Thomas and Daan Struyven at Goldman Sachs maintained their year-end gold price forecast of $5,400 per ounce, citing continued purchases by central banks around the world, as well as expectations that the U.S. will cut rates two more times this year.

White House press secretary Karoline Leavitt said President Trump will deliver a speech on Wednesday at 9:00 p.m. Washington time, outlining the latest developments regarding the war with Iran.

Iran has also提出了 several conditions for ending the fighting, including control of the Strait of Hormuz—this key waterway carried about one-fifth of global oil and liquefied natural gas shipments before the war. Iranian state media, citing President Masoud Pezeshkian, said that if those related demands are met, Iran is ready to end the war.

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