LONDON: Oil and gold prices fell as concerns eased over US monetary policy and the chances of an American attack on Iran, while stock markets pushed higher.

Both main crude oil contracts shed around five per cent on easing US-Iran tensions. The Brent North Sea crude fell 4.9 per cent to $65.51 per barrel while the West Texas Intermediate shed 5.2pc to $61.81 per barrel.

“The trigger for the sharp reversal were comments from President Trump suggesting an easing of tensions with Iran,” said Trade Nation analyst David Morrison. “This reduced fears of an immediate supply shock,” he added.

Washington has hit out at the country’s leadership in recent weeks over its deadly response to anti-government protests, with Trump threatening military action.

He has also pushed for an agreement over Iran’s nuclear programme.

Gold, which has benefitted from safe haven trading when geopolitical tensions mount as well as the lower value of the US dollars, continued its slide lower.

It shed 0.7 percent to $4,710 an ounce, well below the record highs above $5,500 it hit last week.

“Many investors bought gold and silver as protection against the volatile geopolitical backdrop, yet they’ve learned the hard way these assets can also be volatile themselves,” said Russ Mould, investment director at AJ Bell.

It also took a hit on news that US President Donald Trump had chosen Kevin Warsh to become new head of the US Federal Reserve.

Traders regard Warsh, a former Morgan Stanley investment banker and Fed governor, as the toughest inflation fighter among the final candidates, raising expectations that his monetary policy would underpin the greenback.

The choice also eased concerns about the Fed’s independence following a series of attacks on incumbent Jerome Powell over his reticence to cut rates as quickly as the president wanted.

Published in Dawn, February 3rd, 2026