Gold rallied to all-time highs on Wednesday evening, breaking the $5,500-per-ounce threshold as investors sought shelter amid heightened geopolitical tensions following reports that U.S. President Donald Trump was contemplating a fresh strike on Iran.
Spot gold climbed more than 1% to a record $5,595.41 per ounce, while April gold futures rose to a session peak of $5,625.89 per ounce. The jump extended bullion's recent upward momentum as demand for physical assets and other safe havens increased.
Market participants cited a combination of factors underpinning the move. Elevated global geopolitical risk was a primary driver, with reports that the U.S. President may be considering a "major new strike" on Iran after talks over Tehran's nuclear program and missile activities stalled, according to CNN. Those accounts followed U.S. deployments to the Middle East and prior threats of military action that were framed as potential support for nationwide protests in Iran.
In public comments earlier on the day, the President urged Iran to work out a "fair and equitable" deal with Washington and to cease its nuclear efforts. CNN's reporting added that the President warned any subsequent U.S. attack would be far worse than a strike carried out in mid-2025, when U.S. forces attacked Iran's principal nuclear sites. The report said the President is now weighing airstrikes against Iranian leaders and security officials accused of killing protestors, as well as additional attacks on nuclear facilities.
Any further U.S. military action could intensify tensions across the Middle East, a risk highlighted by Iran's vow of bitter retaliation against such moves. Those developments are central to the surge in demand for gold and other safe-haven assets.
The rally in gold showed few signs of slowing, aided by a weaker dollar and growing uncertainty over U.S. policy. Silver and platinum, by contrast, cooled after earlier reaching record highs this week and did not match gold's late session gains.
Analysts and traders noted that geopolitical tensions tied to the United States have been a consistent source of support for gold and other safe havens. Recent U.S. actions, including a separate incursion in Venezuela earlier this month and the past discussion of Greenland, have contributed to the risk-off environment, even as rhetoric appeared to moderate in recent weeks.
Gold's advance came a day when the U.S. Federal Reserve left interest rates unchanged, an outcome that markets had largely anticipated. The Fed's decision appeared to have little impact on bullion's trajectory, which was dominated by geopolitical concerns and dollar dynamics.
Key market sectors affected include precious metals, currencies - particularly the dollar - and broader risk-sensitive asset classes that respond to geopolitical stress. Physical bullion markets and derivatives trading both reflected elevated demand as prices scaled to new records.