India, April 2 -- Gold prices dropped sharply from two-week highs on Thursday after US President Donald Trump said Washington would continue its military campaign in Iran in the coming weeks, lifting oil prices and dampening expectations of interest rate cuts.

Spot gold fell more than 2.8% to $4,622.59 per ounce as of 0719 GMT, after declining over 4% earlier and snapping a four-day winning streak. US gold futures slipped 3.4% to $4,649, Reuters reported.

The decline followed bullion's rise to its highest level since March 19, prior to Trump's remarks.

In India, gold traded at a premium this week for the first time in two months as lower prices boosted demand, while premiums in China edged down slightly as buyers waited for a deeper co...