[Gold Price Trend] After Trump's speech, spot gold prices fell by 1% — "Basically describing the conflict as a military victory rather than a ceasefire declaration"

Gold prices slipped after a speech by U.S. President Trump, with New York futures gold down 2.2% to $4,708 and spot gold down 1.4% to $4,690.

Trump said the month-long conflict is nearing its end; the operation has basically achieved its military objectives, but the United States will carry out an “extremely severe” strike 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 being nearly closed.

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

He said gold prices once climbed to $4,800, and the rally was impressive, but given that the market may curb risk appetite due to concerns about the U.S. taking ground action against Iran, the upward momentum in gold prices may ease somewhat.

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

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