Gold prices surged to a new record close to 5,600 on Thursday as heightened geopolitical tensions between the United States and Iran drove investors into safe-haven assets. At the same time, oil prices also climbed on fears of supply disruptions.
The rally extended across precious metals, with silver also hitting a fresh peak, supported by a weaker US dollar, as growing speculation reportedly suggests that US President Donald Trump is happy to see the worlds reserve currency weaken. Market watchers also said expectations that US interest rates could fall later this year have further fuelled demand for bullion.
Gold jumped by more than 300 at one point to trade above 5,595 after Trump intensified pressure on Tehran to revive negotiations over its nuclear programme, which Western powers believe could be used to develop nuclear weapons.
