Gold prices plummeted as President Trump pledged to "severely" strike Iran.

Gold prices fell sharply in early European trading, as US President Trump vowed to "very harshly" strike Iran in the coming weeks, pushing up oil prices and diminishing hopes of an immediate de-escalation of tension. New York gold futures fell by 4% to $4,619.30 per ounce. Other precious metals also tumbled, with silver falling by 7.3% to $70.54 per ounce, and platinum dropping by 4.6% to $1,896.70 per ounce. Rising inflation risks associated with the increase in oil prices have overshadowed the safe-haven appeal of gold, casting a shadow over the prospect of interest rate cuts. Nevertheless, gold is still expected to achieve a weekly gain of over 5%, thanks to a rebound earlier this week when Trump hinted that the US may step back from the Iran issue in two to three weeks.