Trump's one statement about the Iran war caused a major market reversal! Gold prices plummeted $150 from the daily high—what exactly happened?

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Source: 24K99

On Thursday (April 2nd) during Asian trading hours, after U.S. President Donald Trump delivered a highly anticipated speech, gold prices plummeted. Bloomberg reported that Trump’s latest remarks failed to provide a clear direction for resolving the Middle East conflict.

(Image source: Bloomberg)

After Trump stated that the month-long conflict was nearing its end, but the U.S. would “extremely fiercely” strike Iran in the next two to three weeks, gold prices temporarily dropped by as much as 2.3%, reversing the previous upward trend.

The spot gold price fell to $4,650.36 per ounce, down $150 from the intraday high of $4,800.45.

(Spot gold 30-minute chart source: 24K99)

During his speech in the gold market session, Trump also said that military operations had almost achieved their set goals, while urging allies dependent on Middle Eastern oil supplies to address the near-closure of the Strait of Hormuz.

Following Trump’s speech, Asian stock markets declined, U.S. stock futures extended losses, the dollar index rose by 0.3% at one point, and U.S. WTI crude oil futures and Brent crude oil futures surged over 5% intraday. Spot silver prices dropped 2.8% to $72.98 per ounce, with platinum and palladium also moving lower.

Market concerns remain about energy transportation through the Strait of Hormuz—this strategic waterway previously handled one-fifth of global oil and liquefied natural gas shipments before the conflict.

Bloomberg pointed out that the market trends continued the typical pattern during conflicts: as investors needed to liquidate assets to cover losses elsewhere, the safe-haven appeal of gold was weakened.

(Image source: Bloomberg)

Oversea-Chinese Banking Corporation strategist Christopher Wong said that Trump’s speech “basically described this conflict as a military success rather than a ceasefire declaration.”

He noted, “Gold prices previously surged strongly, reaching a high of $4,800 per ounce during trading, but concerns about possible U.S. ground operations in Iran may have suppressed risk appetite, slowing the upward momentum.”

The sudden retreat in gold prices on Thursday ended a four-day winning streak. Previously, Trump indicated that the U.S. might withdraw from Iran within two to three weeks, leading traders to bet that the Federal Reserve might need to cut interest rates to address potential long-term economic slowdown.

March gold prices fell nearly 12%, marking the worst monthly performance since October 2008. Elevated oil prices and the inflation risks they bring weakened expectations for rate cuts, once again diminishing gold’s appeal as a traditional safe-haven asset.

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