According to APP reports, with Trump's explicit statement that he would continue military action against Iran in the coming weeks, investors' hopes for a clear timeline for the end of the war were completely dashed, directly pushing up oil prices and severely damaging market optimism regarding a Federal Reserve interest rate cut. As a result, international gold and silver prices continued to plummet. Spot gold fell below $4,590 per ounce in the afternoon, with a daily drop of over $150; spot silver also plunged by about 6% during the same period, marking its largest single-day decline in recent times.

Independent metals trader Tai Wong recently commented on this trend, saying, " Trump 's tone was quite tough, mentioning aggressive plans for the coming weeks. This suggests that the optimism of the past few days has been too high, and some pullback is expected before the long weekend." Ten Cap's chief portfolio manager, Jun Bei Liu, also added, "Thursday's decline may also be due to investors choosing to take profits before the long Easter weekend."

Trump 's latest remarks have further amplified geopolitical uncertainty. The continuation of military action has not only exacerbated the risk of energy supply disruptions in the Middle East, causing crude oil prices to rebound rapidly to above $107 per barrel, but has also directly impacted market bets on falling inflation and the Federal Reserve's easing policies. According to the latest market data, following Trump's comments, investors' probability of a Fed rate cut before December has plummeted from approximately 25% to just about 12%. This change reflects heightened market concerns about imported inflation caused by high oil prices, and a rising expectation that the Fed will maintain high interest rates for longer, thereby pushing up real yields and suppressing demand for non-interest-bearing assets such as gold and silver.

Looking at the deeper logic, the sharp drop in spot gold and silver prices is the result of a confluence of factors: on the one hand, soaring oil prices have intensified concerns about stagflation; on the other hand, the safe-haven appeal of the US dollar has strengthened, coupled with profit-taking ahead of the long weekend, jointly putting short-term pressure on precious metal prices. Latest data shows that Brent crude oil has risen more than 50% from its recent lows, while the pullback in precious metals has exceeded the cumulative gains of the past week, indicating that market sentiment has rapidly shifted from extreme optimism to caution.

To visually illustrate the impact of the event, the following is a comparison of key indicators before and after Trump's statement:

Both Tai Wong and Jun Bei Liu 's analyses emphasize that the short-term pullback may be a normal digestion process, but if military action continues to escalate in the next two to three weeks, the volatility of oil prices and precious metals will be further amplified. Investors should be wary of the potential amplifying effect of low liquidity during the long weekend.
Editor's Summary
Trump's continued hardline stance on military action against Iran is reshaping the global market's risk pricing logic through the dual transmission of energy prices and monetary policy expectations. The combination of high oil prices and a declining probability of interest rate cuts will continue to test the safe-haven properties of precious metals until there are substantial signs of easing geopolitical tensions or the Federal Reserve releases clearer policy guidance.