By: Economy Middle east

Gold prices fell on Thursday, reversing course and breaking a four-day run of gains after U.S. President Donald Trump said the war in Iran would continue in the coming weeks.

As of 4:30 GMT, spot gold dropped 2.41 percent to $4,670.2 an ounce, while U.S. gold futures lost 1.98 percent to $4,688.3. Earlier, gold prices had climbed more than 1 percent to their highest since March 19 before retreating following Trump’s comments.

In the UAE, gold rates marked notable declines, with 24-carat gold losing AED10.75 to AED562.25 and 22-carat gold falling AED10 to AED520.75.

Additionally, 21-carat gold eased AED9.5 to AED499.25, while 18-carat gold edged down AED8.25 to AED428.

Meanwhile, 14-carat gold declined AED6.5 to AED333.75.

Investors continue to reprice geopolitical risk

Gold prices reversed course as market sentiment weakened after Trump said in a speech that the U.S. would intensify military action against Iran over the next two to three weeks, while repeating Washington’s position that Tehran must not be allowed to acquire nuclear weapons.

His comments contrasted with remarks earlier in the week, when he had suggested the U.S. could withdraw from Iran within a similar period even without a formal deal. The latest shift in tone underscored how sensitive markets remain to changing rhetoric around the conflict, as investors continue to reprice geopolitical risk.

“After a year-long rally that had pushed several contracts to or near record highs, March delivered a brutal correction. Precious metals took the hardest hit, with gold down 9.7 percent, silver 19.7 percent, platinum 17.9 percent and palladium 18.4 percent,” said Ole Hansen, Head of Commodity Strategy, Saxo Bank.

“Yet the scale of the monthly decline needs to be seen in context. On a one-year basis, gold was still up 49.9 percent, silver 114.9 percent, platinum 96.6 percent and palladium 47.6 percent. This was therefore less a collapse in the longer-term bull narrative than a sharp and painful washout in a heavily owned sector,” he added.

Investors eye U.S. jobs report

As gold prices declined, oil prices recovered after Trump’s speech, deepening worries over inflation and raising the prospect that the Federal Reserve’s interest rates could stay higher for longer, which tends to weigh on non-yielding assets like gold. The U.S. dollar also strengthened after two straight sessions of declines, making gold more expensive for buyers using other currencies.

Markets are still pricing in little chance of a Fed rate cut for most of 2026, with only a modest 25 percent probability of a reduction seen by the December meeting. While gold prices are often supported during periods of geopolitical tension and rising prices, elevated interest rates reduce their appeal by increasing the cost of holding an asset that offers no yield.

Adding to that view, St. Louis Federal Reserve President Alberto Musalem said on Wednesday that there is currently no need for the U.S. central bank to alter its interest rate stance given mounting inflation risks.

Investors are now looking to Friday’s U.S. jobs report for further signals on the Fed’s next steps, with monetary policy expectations remaining a major influence on gold prices.

Other precious metals

As gold prices declined, the broader precious metals market declined. Spot silver declined 4.53 percent to $71.72, platinum lost 2.41 percent to $1,916.34 and palladium fell 1.46 percent to $1,451.60.