TLDR
- Precious metals experienced sharp declines Thursday, with spot gold retreating 4.3% following President Trump’s Middle East policy speech
- Trump indicated the US would strike Iran with significant force within the next two to three weeks
- Silver tumbled 7%, with platinum and palladium posting losses as well
- UBS remains optimistic on gold, projecting a 2026 average price of $5,000 per ounce
- The investment bank considers any decline approaching $4,000 as an attractive entry point
Precious metals experienced a dramatic selloff Thursday following President Donald Trump’s primetime television address that introduced fresh uncertainty regarding the escalating Middle East crisis.
Spot gold tumbled as much as 4.3%, snapping a four-day rally. The yellow metal traded at $4,562.88 per ounce as of 2:12 p.m. in Singapore. Silver experienced an even steeper decline, shedding 7% to reach $69.86. Both platinum and palladium joined the downturn.
In his address, Trump characterized the conflict as approaching conclusion while simultaneously warning of impending aggressive military action against Iran within two to three weeks. He stated that military objectives were close to fulfillment and called upon allies dependent on Middle Eastern energy supplies to contribute to resolving the virtual shutdown of the Strait of Hormuz.
NOW – Trump on Iran: "We're going to hit them extremely hard over the next 2-3 weeks. We're going to bring them back to the stone ages, where they belong!" pic.twitter.com/knSmNB9OQk
— Disclose.tv (@disclosetv) April 2, 2026
The Strait of Hormuz previously served as the passage for approximately one-fifth of global oil and liquefied natural gas shipments. Fears about energy transportation through this critical waterway have driven crude oil prices upward.
The US dollar index climbed 0.4% in the aftermath of Trump’s remarks. Equity markets also retreated as investors pulled back from riskier assets.
Christopher Wong, a strategist with Oversea-Chinese Banking Corp, characterized Trump’s address as “basically fram[ing] the conflict as a military success story, not a ceasefire announcement.” He observed that gold had touched an intra-session peak of $4,800 earlier but suggested momentum might decelerate given concerns about a potential US ground invasion of Iran.
Gold had already endured a challenging March. The precious metal declined nearly 12% during the month, marking its steepest monthly decline since October 2008. Elevated oil prices sparked inflation worries, diminishing expectations for interest rate reductions and pressuring gold prices.
Prior to the presidential address, market participants had anticipated the Federal Reserve might implement rate cuts to bolster economic growth if hostilities continued. That sentiment changed following Trump’s hawkish messaging.
Wong noted that with markets preparing for the Good Friday closure, traders’ eagerness to reduce exposure ahead of the extended weekend was also affecting price action.
UBS Maintains Bullish Gold Stance Despite Selloff
The sharp decline hasn’t altered UBS’s optimistic outlook on gold. Strategist Joni Teves stated in a Thursday research note that the firm interprets the current weakness as a strategic accumulation opportunity.
UBS modestly adjusted its 2026 gold projection to $5,000 per ounce from $5,200, acknowledging the recent pullback from January’s record high. The bank left its 2027 forecast unchanged at $4,800 and its 2028 outlook at $4,250.
Teves highlighted that speculative positions have been unwound and exchange-traded fund outflows have been limited, creating space for investors to reestablish positions. Chinese gold ETFs have maintained positive inflows, while physical demand in domestic markets remains robust.
According to UBS, any retracement toward the $4,000 threshold would represent an attractive opportunity to increase holdings.
Silver Projections Lowered
UBS reduced its 2026 silver forecast to $91.9 per ounce from $105. Teves explained that silver’s dual function as an industrial metal increases its vulnerability to potential global economic deceleration.
Spot silver was trading at $69.86 on Thursday.
