At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
Gold fell sharply from two-week highs on Thursday after US President Donald Trump said that Washington would continue its military campaign in Iran in the coming weeks, driving oil prices higher and dampening hopes of interest rate cuts.
Spot gold declined over 2.8% at $4,622.59 per ounce, as of 0719 GMT, after falling over 4% earlier and snapping a four-day winning streak. US gold futures slid 3.4% to $4,649.
Following international market trends, gold and silver prices in Pakistan witnessed a decline. The price of gold dropped by Rs7,100 per tola, bringing it down to Rs486,962, while the rate for 10 grams of gold decreased by Rs6,087 to Rs417,491.
Silver prices also fell, with the price per tola decreasing by Rs350 to Rs7,634, while the rate for 10 grams dropped by Rs300 to Rs6,544.
The pullback followed bullion’s climb to its highest level since March 19, before Trump’s remarks.
In a prime-time address, Trump said the US would carry out aggressive strikes on Iran and was nearing “completion of its main strategic objectives” in the conflict. It disappointed investors who had hoped for clearer signals of an end to hostilities.
“It’s (gold’s slide) a clear reaction to (Trump’s) address and the risk of escalation potentially over the weekend… that’s pushed oil prices, US dollar and yields higher, and naturally that’s pushed the gold price quite meaningfully lower,” said Kyle Rodda, a senior financial market analyst at Capital.com.
The 10-year US Treasury yield and the dollar index both advanced, pressuring dollar-denominated gold.
Meanwhile, Brent crude surged more than 6% after Trump indicated targeting of Iran’s energy infrastructure, raising supply concerns.
Gold had dropped 11% in March, its worst monthly performance since 2008, following the outbreak of the Iran conflict on February 28. The surge in oil prices has fuelled inflation concerns, complicating the Federal Reserve’s monetary policy outlook.
Expectations for US rate cuts remain low through most of 2026. Bets for a December reduction have fallen to just 12%, down from around 25% before Trump’s latest comments.
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While gold typically benefits during periods of inflationary pressure and geopolitical tension, higher interest rates reduce its appeal by increasing the opportunity cost of holding the non‑yielding asset.
Gold traded at a premium in India this week for the first time in two months, as softer prices boosted demand for the metal, while premiums in China ticked down slightly as buyers awaited a deeper correction.
In other metals, spot silver fell 5.4% to $71.07, having earlier dropped over 7%, platinum fell 3.1% to $1,902.65 and palladium shed 1.8% to $1,446.53.
