Gold prices declined sharply on Thursday, highlighting renewed volatility in global financial markets.
The price of gold declined by 1.3%, with an ounce trading at approximately $4,670. The drop followed remarks by Donald Trump, who indicated that the conflict with Iran is likely to continue for several more weeks. His comments weakened investor confidence and triggered a sell-off in the precious metal.
A day earlier, gold prices had surged to nearly $4,800 per ounce. That rise was driven by expectations that Trump might announce an end to the war in Iran, a move that would typically reduce uncertainty and decrease demand for safe-haven assets like gold. However, when no such announcement came, market sentiment quickly shifted.
Instead, Trump suggested that U.S. military operations against Iran could intensify within the next two to three weeks. He used strong and aggressive language, signaling a tougher stance that added to market uncertainty. Despite heightened tensions, some investors chose to lock in profits, contributing to the decline in gold prices.
Independent financial analyst Tai Wong said gold has experienced sharp fluctuations over the past two days. According to him, prices have moved up and down significantly as traders respond to fast-changing geopolitical developments.
Wong also noted that Trump’s tone appeared “highly aggressive,” with clear indications of escalating military action. Such rhetoric can create mixed reactions in financial markets, where gold may either rise as a haven or fall due to shifting investor strategies.
Analysts expect gold prices to remain unstable in the coming days, as geopolitical tensions and uncertainty surrounding the Iran conflict continue to influence global markets.
