09:23 AM EDT, 04/02/2026 (MT Newswires) -- Gold prices fell early Thursday, as the dollar and yields surged after U.S. President Trump said attacks on Iran will continue for "two or three" weeks, while he also threatened to escalate attacks on the country. Oil-supply disruptions continue as a result.

Gold for May delivery was last seen down $164.50 to US$4,648.60 per ounce.

Trump delivered a televised speech on Wednesday evening, saying he expects the war to last another two to three weeks while promising to bomb the country "back to the stone ages, where they belong".

Oil prices are up by nearly two-thirds since the war began on Feb. 28, with Iran's closure of the Strait of Hormuz blocking 20% of global oil and LNG supply from Persian Gulf nations. The rise in energy costs threatens to boost inflation and force central banks to raise interest rates, pushing up the dollar and treasury yields, and bearish for gold.

"Gold did not behave like a straightforward geopolitical winner this morning...as the stronger dollar and higher Treasury yields outweighed the safe-haven bid," Saxo Bank noted.

The ICE dollar index was last seen up 0.47 points to 100.12, while yield on the two-year note was up 2.5 basis points to 3.84% and the 10-year note was paying 4.356%, up 3.4 points.