Statements by US President Donald Trump about abandoning the ceasefire with Iran triggered a sharp collapse in the precious metals market. Instead of fleeing to safe havens, investors began selling them off en masse.
After the president’s categorical remarks, August gold futures slid more than 2% to $4,065 per troy ounce. September silver contracts and October platinum futures fell in sync, dropping 4.2% to $58.74 and $1,593.20 per ounce, respectively. Overall, since the start of the armed conflict in Iran in late February, gold has already lost more than 20% of its value.
The paradox of safe‑haven markets falling amid military news is simple to explain. According to commodity analyst Eva Mantei at ING Bank N.V., the lion’s share of the geopolitical premium has long been priced in. The expert notes that the new escalation prompted traders to make a technical re‑adjustment of positions rather than buy gold in panic.
The trigger for the current sell‑off was Trump’s blunt statement that the truce, established after reciprocal strikes by the US and Iran, has effectively ended. The president called attempts to continue talks with Tehran “a waste of time” and said he no longer saw any practical purpose in them.