Gold Prices Plummet 2%, Bruised by Trump's Remarks
Gold and silver prices tumbled again as the US dollar strengthened and global oil prices rose.
The dollar soared after US President Donald Trump stated that the United States would continue its attacks on Iran, sparking inflation concerns and bolstering expectations for higher interest rates.
Referring to Thursday’s trading (2 April 2026), gold closed at $4,675.67 per troy ounce. Its price fell 1.72%, nearly 2%.
This decline ended gold’s four-day winning streak, which had gained 8.6%. The weakness also pulled gold back to the $4,600 level.
Gold prices plunged due to the surge in the US dollar and oil prices. The US dollar jumped sharply, making gold—priced in dollars—more expensive for holders of other currencies.
The dollar index broke back above 100 after previously easing to 99. Meanwhile, Brent crude oil closed at $109.28 per barrel on Thursday (2 April 2026), up 8.03%.
“The market is very focused on Trump’s statements, which so far show no signs of a quick resolution to the energy situation,” said David Meger, director of metal trading at High Ridge Futures, to Reuters.
He added that this is pressuring gold and silver prices as the likelihood of rate cuts diminishes.
In his televised speech, Trump said the US military was nearly achieving its goals in Iran. However, he provided no clear timeline for ending the war, which has lasted a month, and vowed to bomb the country back to the “Stone Age”.
Oil prices rose following Trump’s statement. The increase in energy prices is driving broader inflation, thereby reducing room for central banks to lower interest rates.
Although known as an inflation hedge, gold tends to be pressured when interest rates are high because it offers no interest yield. Spot gold prices have fallen 12% since the Middle East conflict began on 28 February.
Market sentiment was also weighed down by news that Turkey’s central bank gold reserves dropped 69.1 metric tonnes to 702.5 tonnes last week. The decline over the past two weeks exceeds 118 tonnes, as authorities seek to mitigate market impacts from the war.
In Asia, gold traded at a premium in India for the first time in two months as lower prices spurred demand. Meanwhile, the premium in China eased slightly as buyers awaited a deeper price correction.
Silver prices also tumbled.
According to Refinitiv, silver closed at $72.99 per troy ounce on Thursday (2 April 2026). Its price fell 2.84%.
This weakness ended silver’s four-day winning streak, which had gained 10.4%.