GOLD COLLAPSES NEARLY 4% AS TRUMP ESCALATES IRAN THREATS, DOLLAR AND OIL SURGE

Gold prices plummeted nearly 4% to $4,600 per ounce on Thursday, snapping a four-day winning streak, as the US dollar and oil prices surged following President Donald Trump’s vow to intensify attacks on Iran.

His remarks, confirming the US had "nearly accomplished" its military objectives but offering no end in sight to the month-long conflict, sparked inflation fears and reinforced expectations of higher interest rates.

In a Wednesday address, President Trump declared that US forces had "nearly achieved" their objectives in Iran, yet stopped short of providing a timeline for ending the month-long war, instead vowing to hit Iran "extremely hard" in the coming "two to three weeks." On the other hand, Tehran dismissed his assertion that it had sought a ceasefire, reaffirming that the Strait of Hormuz remains firmly under IRGC Navy control.

The dollar’s safe-haven rally weighed on dollar-denominated gold, which has now lost 13% of its value since the conflict began on February 28.

Key points of Trumps Adress yesterday

• Hopes of end to conflict evaporate after Trump speech
• Oil surges as stagflation risks swirl, denting risk assets
• Stocks sharply lower as Trump speech provides little clarity
• Investors likely to stay defensive as Trump ramps up threats

Oil prices surged and global equity and bond markets recoiled again on Thursday after U.S. President Donald Trump dashed hopes of a swift resolution to the Middle East war.

Brent crude jumped more than 7% to above $109 a barrel after Trump said in a prime-time address on Wednesday that the U.S. would hit Iran "extremely hard" in the coming weeks and "bring them back to the Stone Ages where they belong".

Wishing you as always, good trading,