【Gold Price Trend】 After Trump's speech, spot gold prices fell 3% to $4,600, "Basically describing the conflict as a military victory rather than a ceasefire declaration."

Gold prices fell after a speech by U.S. President Donald Trump, with New York futures gold down 4.2% to $4,613 and spot gold down 3.2% to $4,607.

Trump said that the conflict, which has continued for a month, is nearing the end, and that its operations have basically achieved their military objectives, but that the U.S. will carry out an “extremely severe” response against Iran within the next two to three weeks. Trump also urged allies that rely on Middle East oil supplies to address the issue of the Strait of Hormuz, which is nearly closed.

Christopher Wong, a strategist at Oversea-Chinese Banking Corporation, said Trump’s remarks “basically described this conflict as a military victory rather than a ceasefire statement.”

He said that gold prices at one point rose toward $4,800, and the upward move was striking, but given that the market may curb risk appetite out of concern over the possibility of the U.S. taking ground action against Iran, the momentum behind the rise in gold prices may ease somewhat.

As Trump had previously said the U.S. could withdraw from Iran within two to three weeks, and as traders have been betting that the Federal Reserve will need to cut rates or may cut rates to deal with the potential for a prolonged economic downturn, gold prices have rebounded day after day.

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