Gold Prices Fall as Trump Delays Iran Strike Decision, Risk Appetite Improves
Gold prices declined in Asian trading on Friday as investor risk appetite showed signs of recovery, following a White House announcement that President Donald Trump would delay a decision on potential U.S. military involvement in the Israel-Iran conflict for two weeks.
The decline in gold was also compounded by lingering pressure from hawkish Federal Reserve comments earlier in the week, which boosted the U.S. dollar. Although the dollar edged lower on Friday, it remained poised for a weekly gain, weighing on precious metals broadly and curbing platinum’s recent surge to a multi-year high.
By 00:58 ET (04:58 GMT), spot gold was down 0.5% at $3,353.17 per ounce, while August gold futures slipped 1.1% to $3,369.40 per ounce.
Gold Retreats as Geopolitical Fears Ease Temporarily
The drop in gold came as markets responded positively to the White House’s announcement that Trump would not make an immediate decision on military action against Iran. This helped ease concerns of a near-term escalation, despite earlier reports suggesting preparations for a potential U.S. strike.
However, skepticism remained. Trump has often cited a “two weeks” timeline in previous high-stakes policy issues—such as his stance on Russian President Vladimir Putin—only to delay action indefinitely. As a result, uncertainty lingers over whether military engagement is truly off the table.
Still, the absence of immediate conflict encouraged risk-on sentiment, even as Israel and Iran continued active hostilities, with the conflict entering its eighth day.
Broader Metal Market Also Under Pressure
Precious and industrial metals saw declines on Friday, largely influenced by a resilient U.S. dollar and cautious market sentiment post-Fed.
- Silver futures dropped 1.6% to $35.765 per ounce.
- Copper futures fell 0.3% to $9,602.05 a ton on the London Metal Exchange, while U.S. copper futures dipped 0.9% to $4.7650 per pound.
Platinum Pulls Back After Hitting Multi-Year High
Platinum futures retreated 1.5% to $1,282.75 per ounce, stepping back from a more than four-year high touched in the prior session. Still, the metal remained up 5.8% for the week, marking its third consecutive weekly gain.
The rally, which began in mid-May, was driven by an industry report highlighting tight supply and strong demand, prompting a wave of speculative buying. Despite this momentum, analysts remain cautious about the long-term sustainability of platinum’s sharp rise.
