Investing.com - Gold prices fell on Thursday in Asia as U.S. President Donald Trump opted to impose new economic sanctions on Iran rather than call for military action against the Islamic Republic., stoking hopes that tensions between the two nations will ease.
Gold futures traded 0.3% to $1,555.25 per ounce by 1:10 AM ET (05:10 GMT).
In a speech following Iran's strikes on several U.S. military bases, Trump said Iran appeared to be “standing down,” calling it a “good thing for all parties concerned.”
"The fact that we have this great military and equipment, however, does not mean we have to use it," the president added.
Global equities recovered following his comments, while prices of the safe-haven gold fell.
Gold prices began to lose momentum yesterday when Iran said it had "concluded" the attacks for now, while Foreign Minister Mohammad Javad Zarif tweeted that the country does "not seek escalation or war".
“The main driver was President Trump’s delayed response to the missile strike yesterday, suggestive that he was taking a more cautious approach (than) his usual demeanour and prior tweets suggested,” Tapas Strickland, director of economics and markets at the National Australia Bank, wrote in a morning note.
“Markets have now largely unwound the risk-off moves that have occurred since Friday,” Strickland added.