FX.co ★ Gold Falls to One-Week Low on Trump’s Iran Remarks

Gold extended its decline to around $4,030 an ounce on Wednesday, hitting its lowest level since July 2 after US President Donald Trump declared the interim peace agreement with Iran “over.” His remarks drove oil prices more than 5% higher, amplifying concerns that rising energy costs could fuel inflation and keep US interest rates elevated. Speaking at NATO’s summit in Ankara, Trump said he had no interest in further engagement with Iran and warned that Washington was likely to carry out additional strikes later on Wednesday. His comments marked another sharp turn in a conflict in which rhetoric from both the US and Iran has repeatedly swung between threats of military escalation and hints of diplomatic compromise. Financial markets are now pricing in at least one Federal Reserve interest rate hike by the end of 2026. At the same time, China’s central bank reported in June its largest monthly increase in gold reserves in more than two and a half years, underscoring the persistence of official-sector demand for the metal.