Gold prices reached an all-time high above $5,200 an ounce on Wednesday, supported by robust safe-haven demand and continued weakness in the U.S. dollar that benefitted metals generally.
Spot gold eased slightly to $5,179.41 per ounce by 19:55 ET (00:55 GMT) after briefly peaking at $5,202.06 per ounce. On the futures market, April gold contracts jumped 1.8% to $5,215.46 per ounce.
Investors sought refuge in bullion following remarks from U.S. President Donald Trump that a second armada was headed towards Iran and that he hoped Iran would accept a deal with Washington. Those remarks helped sustain demand for havens amid heightened geopolitical risk.
Market participants pointed to uncertainty over U.S. policy as a central factor underpinning gold's advance this year. The metal's rally has coincided with episodes of global tension, including an incursion in Venezuela and diplomatic friction over Greenland, which together have contributed to risk-off flows into precious metals.
At the same time, weakness in the dollar amplified gains for metals. The dollar slid to multi-year lows this week amid investor concerns over expansive fiscal spending and questions about the Federal Reserve's independence under the current administration - dynamics that have pushed some investors toward safe assets such as gold.
President Trump said on Tuesday that he was close to naming his pick for the next Fed chair following Jerome Powell and expressed the view that interest rates would fall under new leadership at the central bank. A persistent public dispute between the White House and the Fed has been cited as another support factor for gold, as it has raised investor unease about the central bank's autonomy.
Other precious metals were also firm. Spot silver rose 1.2% to $113.4325 per ounce, while spot platinum gained 0.6% to $2,669.61 per ounce, with both metals remaining in the vicinity of recent record highs.
Market context and takeaway
Gold's move to a record level reflects a combination of increased geopolitical risk, dovish expectations for U.S. monetary policy tied to comments from the presidency, and a softer dollar that improves the appeal of dollar-denominated commodities. Silver and platinum tracked the broader sentiment in metals markets, staying close to their highs.
Information in this report is limited to the statements, price levels, and market drivers noted above.