Asia Stocks Slip, Gold Gains as Trump Weighs U.S. Strike on Iran

Asian stock markets slipped Thursday as investors sought safe-haven assets amid rising geopolitical tensions. Concerns over possible U.S. involvement in the escalating Israel-Iran air war drove demand for gold and the Japanese yen.

President Donald Trump fueled uncertainty, saying, “I may do it. I may not do it,” when asked if the U.S. would join Israel’s attacks on Iranian nuclear facilities. According to the Wall Street Journal, Trump approved strike plans but is holding off to see if Iran halts its nuclear ambitions.

Japan’s Nikkei dropped 0.8%, pressured by the yen’s 0.2% rise to 144.92 per dollar, which dampens exporter earnings. Taiwan’s benchmark fell 0.9%, while Hong Kong’s Hang Seng lost 0.8%.

Gold rose 0.3% to $3,378 per ounce. Brent crude edged down to $76.32, still close to Friday’s 4.5-month high of $78.50. U.S. S&P 500 futures were down 0.4%, although American markets were closed for a holiday.

“Markets remain edgy,” said Kyle Rodda, senior analyst at Capital.com. “Speculation—possibly encouraged by the Trump administration—that the U.S. will intervene in Iran is keeping volatility high. Any strike risks broader conflict, threatening global energy supply and economic stability.”

The U.S. dollar also gained, rising 0.1% to $1.1472 per euro and 0.2% to $1.3398 versus the pound. The Swiss franc dipped 0.1% to 0.8193 per dollar ahead of policy announcements by the Bank of England and Swiss National Bank. The BOE is expected to hold rates steady, while the SNB may cut by 25 basis points.

Meanwhile, the Federal Reserve kept rates unchanged and signaled two potential cuts this year. However, Chair Jerome Powell warned that Trump’s aggressive tariffs could fuel “meaningful” inflation, complicating the path for easing.