Gold fell to $4,160 an ounce after President Trump warned Iran it could face a strike, stoking uncertainty in high‑stakes talks to end the Middle East conflict. The alert marked a third straight day of decline for bullion, pulling investors back from a recent rally.

Negotiations, held in Switzerland, had stalled earlier when Iranian media claimed Tehran paused talks after the threat. Sources say discussions resumed overnight, but the ambiguity has rattled risk‑averse traders who had begun shifting into gold.

The move underscores how political jitters can shift commodity prices overnight. Declines in gold erode hedgers’ gains and shift capital toward safer assets, tightening liquidity in related sectors. Market watchers now eye further U.S. statements for clues on whether tensions will ease or deepen.

Investors face a clear risk: any uptick in geopolitical tension could swing gold higher, while a calm resolution would likely push prices lower, tightening the window for profitable trades.