02.04.2026 04:40
Gold fell sharply from a two‑week peak, slipping below the $4,800 level that had been set earlier this week. The precious metal’s four‑day rally appears to have ended as the U.S. dollar gained strength, driven by fresh geopolitical jitters.
U.S. President Donald Trump’s recent comments warned that Iran would face severe repercussions over the next two to three weeks if a deal is not reached, suggesting a return to a “Stone Age” for the nation. These remarks dampened hopes for a de‑escalation and increased risk‑aversion among investors, thereby supporting the dollar’s status as the world’s reserve currency and putting downward pressure on gold.
Trump also highlighted that Iranian energy infrastructure could become a target, adding another layer of uncertainty. In parallel, a report from a major U.S. newspaper noted that the United Arab Emirates is advocating for military action to reopen the Strait of Hormuz and is lobbying for a United Nations Security Council resolution to authorize such an operation.
The potential for renewed conflict spurred a sharp rally in crude oil prices, reigniting inflationary concerns and reinforcing expectations of a rate hike by the Federal Reserve. Higher oil prices lift U.S. Treasury yields, which in turn benefits the dollar and weighs on non‑yielding assets like gold.
Gold’s decline of roughly $150 from its Asian session high is expected to keep volatility elevated as market participants digest the unfolding geopolitical developments. While the upcoming U.S. Non‑Farm Payrolls report may not trigger a dramatic move, the broader backdrop suggests caution before attempting to extend the recent rebound from the $4,100 level, a four‑month low recorded last week.
