FX.co ★ Gold Drops as Trump Escalates Threats

Gold fell toward $4,600 per ounce on Monday, extending the previous session’s losses after President Donald Trump issued a new ultimatum to Iran and threatened strikes on its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Trump vowed to bring “Hell” to Iran, set a fresh deadline for Tuesday at 8 p.m. Eastern Time, and signaled plans to hold a news conference at 1 p.m. on Monday. Tehran has rejected the latest ultimatum and continues to carry out attacks on energy assets across the Middle East. Gold is now down roughly 12% since the conflict began, as surging energy prices have heightened inflation concerns and reinforced expectations of interest rate hikes. The metal has also struggled to fulfill its traditional safe-haven role, pressured by forced liquidations as investors move to cover losses in other markets.