Gold prices plummet as Trump sends ambiguous signals on how to end the Iran war

MaticHoleFiller · 2026-04-12T09:15:40+00:00

Gold prices plummeted due to Trump's speech not offering a Middle East conflict resolution plan, and silver prices also declined. The market is worried about possible U.S. military actions, leading to decreased risk appetite and a slowdown in gold price gains. In March, gold prices recorded their worst performance since October 2008.

MaticHoleFiller

2026-04-12 09:15:40

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Gold prices fell sharply, as President Donald Trump’s highly anticipated speech provided little clear information on how to resolve the Middle East conflict. Silver prices also dropped significantly.

Spot gold once plunged by 4.3%, ending a four-day winning streak. Trump stated that the month-long conflict is nearing its end, but the U.S. will carry out “extremely severe” strikes on Iran within the next two to three weeks. During his speech in prime time, the U.S. leader also said that military operations have basically achieved their goals, and urged allies dependent on Middle Eastern oil supplies to resolve the near-closure of the Strait of Hormuz.

Trump’s remarks “basically described this conflict as a military victory rather than a ceasefire declaration,” said Christopher Wong, strategist at OCBC Bank. “Gold briefly rose to $4,800 per ounce during trading. But from now on, given market concerns that the U.S. may undertake ground military action in Iran, risk appetite could be suppressed, and gold’s rally might slow down.”

Considering Trump previously indicated that the U.S. might withdraw from Iran within two to three weeks, traders had earlier bet that the Federal Reserve might need to cut interest rates to cope with a potential long-term recession. Wong said that markets will be closed on Friday for the holiday, and investors are looking to minimize risks before the long weekend, which could dominate trading sentiment.

Gold prices in March fell nearly 12%, marking the worst monthly performance since October 2008, as the inflation risk reduced by high oil prices lowered the prospects for declining borrowing costs, once again offsetting gold’s traditional appeal as a safe-haven asset.

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Editor: Jiang Xuesi

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