Global gold prices surged to a fresh all-time high above $5,500 on Thursday, as rising geopolitical tensions triggered by renewed threats from former United States President Donald Trump against Iran unsettled financial markets worldwide.
Bullion climbed by more than $300 at one point, peaking at $5,588.71, as investors rushed to safe-haven assets following Trump’s warning that Tehran must urgently negotiate a deal over its nuclear programme or face severe consequences.
In a post on his Truth Social platform, Trump said Iran must agree to a deal that guarantees “NO NUCLEAR WEAPONS,” warning that time was running out. He further cautioned that any future military action would be “far worse,” referencing previous US strikes on Iranian targets in June.
The spike in precious metals extended beyond gold, with silver also reaching a new peak. Analysts linked the rally to a weakening US dollar, driven by speculation that Trump favours a softer currency and growing expectations of interest rate cuts later in the year.
Oil prices also advanced on supply concerns, with US West Texas Intermediate crude hitting its highest level since September, while Brent crude rose to levels last seen in August. The gains followed reports that a US naval strike group led by the aircraft carrier USS Abraham Lincoln had moved into Middle East waters, amid fears of possible military escalation.
CNN reported that Trump was considering military action after nuclear talks with Iran failed to make progress. In response, Iran’s Foreign Minister, Abbas Araghchi, warned that Iranian forces were on high alert and would respond “immediately and forcefully” to any US attack, although he did not rule out renewed negotiations.
Equity markets reacted negatively to the rising uncertainty. Major Asian stock markets, including Tokyo, Hong Kong, Shanghai, Sydney and Seoul, closed lower. Jakarta stocks plunged by eight per cent, extending losses from the previous day following concerns raised by index compiler MSCI over ownership issues in Indonesia’s market.
Market analysts said gold’s sharp rise reflects deeper concerns about global economic leadership and policy credibility. Some described the rally as a sign of declining confidence in traditional financial systems rather than a response to inflation or recession fears.
Meanwhile, the US Federal Reserve’s latest policy meeting provided little direction for markets, as officials left rates unchanged and maintained a cautious stance. Attention has now shifted to Trump’s expected nomination of a new Federal Reserve chair ahead of Jerome Powell’s exit in May, with investors anticipating a more accommodative approach to monetary policy.
Despite assurances from US Treasury Secretary Scott Bessent that Washington maintains a strong dollar policy, the greenback remained under pressure against major currencies, adding further support to the rally in gold and other commodities.l
