PRECIOUS-Gold rebounds from four-month low after Trump postpones strikes on Iran's energy assets
By Ashitha Shivaprasad
March 23 (Reuters) - Gold prices trimmed losses on Monday, rebounding from a four-month low hit earlier, after U.S. President Donald Trump's comments postponing planned military strikes on Iranian energy infrastructure sent oil prices plunging.
Spot gold XAU= fell 0.4% to $4,470.36 per ounce by 10:53 a.m. ET (1453 GMT), after falling over 8% earlier to a session low of $4,097.99. It posted its worst weekly performance since 1983 on Friday.
U.S. gold futures GCcv1 fell 2.2% to $4,471.60.
"The overnight sell-off was a continuation of the long liquidation we've seen over the past several sessions, driven largely by expectations of rising interest rates. The dramatic reversal came after Trump's post on Truth Social. The headline triggered broad reversals across markets - metals, energy and equities alike," said David Meger, director of metals trading at High Ridge Futures.
"It's fair to assume that we're going to see volatility continue," he added.
Higher energy prices due to the Iran war have lately increased bets on rates staying higher for longer. Gold, despite its reputation as an inflation hedge and safe haven, has struggled to benefit as elevated rates raise the opportunity cost of holding the non-yielding metal.
Trump said the U.S. and Iran have held constructive talks and that he would postpone any strikes on power plants and energy infrastructure. Conversations with Iran will continue throughout the week, he said in a social media post. However, Iran's Fars news agency, citing a source, said there are no direct or indirect communications with the U.S.
Following Trump's comments, oil prices plunged and the dollar moved lower. A weaker dollar makes greenback‑priced bullion more affordable to other currency holders. USD/ O/R
Spot gold prices have fallen over 15% since the Middle East conflict began on February 28, and has retreated about 20% from its record peak of $5,594.82 reached on January 29.
Among other metals, spot silver XAG= rose 3.3% to $70.01 per ounce, while platinum XPT= slipped 1.1% to $1,901.53. Palladium XPD= added 3.4% to $1,450.79.
