Gold retreated from two-week highs ‌on Thursday after U.S. President Donald Trump said that Washington would continue its military campaign in Iran in the coming weeks, pushing crude prices sharply higher and dampening hopes of interest rate cuts.

Spot gold fell 3.44% to $4,594.87 per ounce; spot silver fell 5.66% to $70.86 per ounce.

The pullback followed bullion's climb to its highest ⁠level since March 19, prior to Trump's remarks.

In a prime-time address to the nation ​late on Wednesday, Trump said the United States would carry out aggressive strikes on Iran over ​the next two to three weeks and was nearing "completion of its main strategic objectives" in the conflict.

"Gold is pulling back after two superb days, as President Trump was quite bellicose in his tone, referring to ​aggressive plans over the coming weeks... it suggests the optimism of the last few ​days was exuberant and there will be some retracement ahead of the long weekend," independent metals trader ‌Tai Wong said.

Markets ⁠reacted swiftly: the 10-year U.S. Treasury yield and the dollar index both advanced, pressuring dollar-denominated gold.

Meanwhile, Brent crude surged more than 6% after Trump indicated continued targeting of Iran's energy infrastructure, raising supply concerns.

Gold had already been under pressure, dropping 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 U.S. 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.

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.