Gold prices fell 2% to $4,664.39 per ounce on April 2, breaking a four-day winning streak after President Donald Trump announced plans to escalate military operations in Iran over the next two to three weeks. The president made a prime-time address on April 1 promising to hit Iran "extremely hard" if a deal was not reached, threatening to target each of Iran’s electric generating plants and its oil infrastructure if no deal was reached. The reaction was counterintuitive as geopolitical escalation typically supports gold as a safe haven. However, the Iran conflict has changed this relationship, with rising oil prices increasing inflation expectations and pushing Treasury yields and the dollar higher. The U.S. dollar index rose 0.27% after the speech, and bets for a December Federal Reserve rate cut fell to just 12%, down from around 25% before Trump's comments. Gold has fallen more than 11% since the conflict began on Feb. 28 and has been liquidating gold positions to cover losses, despite the ongoing conflict.