NEW YORK, April 2, 2026, 13:12 EDT
Gold slid Thursday, erasing some of Wednesday’s sharp gains. A stronger dollar and another spike in oil came after President Donald Trump vowed ongoing U.S. strikes against Iran. Spot gold lost 2% to $4,660.95 an ounce as of 11:22 a.m. EDT. U.S. gold futures—contracts for later delivery—fell 2.6% to $4,686.80.
The sharp turnaround stands out after gold surged 2.5% Wednesday, hitting the highest level since March 19 on hopes for a ceasefire and a weaker dollar. By Thursday, much of that gain vanished: oil prices spiked, the dollar strengthened, and bets shifted back toward stubborn inflation and potentially elevated borrowing costs.
Gold keeps its reputation as a safe haven—investors turn to it when risk is in the air. Still, bullion doesn’t offer a yield, so when energy prices surge and rate hike bets pick up, its appeal can fade. Brent crude jumped over 7% on Thursday, and spot gold slid, taking silver down with it.
David Meger, director of metals trading at High Ridge Futures, told Reuters the market’s attention is locked on Trump’s remarks, with little relief expected for the energy crunch and slim prospects for rate cuts. The dollar index ticked up 0.35% to 99.92. Brent crude climbed roughly 5.4%, trading at $106.66 a barrel following the president’s televised statement.
Just a day before, things had taken a turn. Bob Haberkorn at RJO Futures saw room for gold to push past $5,000 an ounce, assuming the possibility of de-escalation revives Fed-cut hopes. Spot gold reached $4,784.22 on Wednesday—its strongest level since March 19.
There’s the catch for gold. “Peace could be a ‘double-edged sword’ for gold,” IG market analyst Tony Sycamore said. On one hand, it could knock out some of the geopolitical premium, but on the other, if oil prices fall and inflation cools, that might refresh hopes for Fed rate cuts in 2026—giving bullion some new life. Reuters
Despite a rally this week, gold finished March off 11.8%—marking its sharpest monthly drop since October 2008. Peter Grant, vice president and senior metals strategist at Zaner Metals, pointed out that the bigger picture still looks bullish, citing ongoing central-bank accumulation and moves by some countries to shift away from the U.S. dollar.
The physical market told a split story this day. Indian dealers pushed premiums for the first time in two months—lower prices lured buyers back in. In China, though, buyers hung back, hoping for prices to fall further. Sentiment soured after news that Turkey’s central bank gold reserves had dropped by 69.1 metric tons last week, pushing the two-week total drop to more than 118 tons.
Movements across other precious metals diverged. Spot silver slumped 3.9% to $72.19 an ounce. Platinum edged up 0.5% to $1,974.35, and palladium managed a 2.1% gain, climbing to $1,503.57.
Friday brings the U.S. payrolls report. Reuters’ survey of economists points to 60,000 jobs added in March. A stronger figure could back up bets that rates stay higher for longer. Wall Street won’t be open when the data drops—it comes out on Good Friday.
