Gold Lower on Mixed Signals Over Potential Iran Ceasefire

Gold prices dropped sharply Thursday after conflicting statements from the U.S. president on potential Iran ceasefire talks, destabilizing global markets and triggering a near 20% decline from recent peaks. The metal fell as much as 3.4% before partially recovering after the administration announced an extension of paused strikes on Iran’s energy infrastructure, easing some investor concerns. Earlier volatility pushed gold toward bear-market territory, defined as a 20% drop, as traders reacted to mixed signals about diplomatic progress in the month-long conflict. Axel Merk of Merk Investments weighed in on Bloomberg, analyzing the market reaction amid geopolitical uncertainty and shifting investor sentiment toward safe-haven assets. The president later claimed talks were progressing well, contradicting earlier reports, further complicating market predictions and gold’s short-term trajectory.