Gold Hits Record as Trump Escalates Iran Threats

ISLAMABAD: (Web Desk) – : Global markets were rattled on Thursday as gold prices surged to a fresh all-time high above $5,500 an ounce, while oil climbed and equities slid after former US President Donald Trump escalated rhetoric over a possible military strike on Iran.

Safe-haven demand pushed bullion sharply higher, with prices jumping more than $300 at one stage to reach a peak of $5,588.71. Silver also touched a new record, supported by a weaker US dollar amid growing speculation that Washington is comfortable with currency depreciation.

Investor sentiment remained fragile after the Federal Reserve’s latest policy announcement failed to offer clear direction. Market participants, however, remain optimistic that interest rates could be lowered later this year, especially as Trump prepares to nominate the next Federal Reserve chair.

Gold’s rally intensified after Trump warned Iran to urgently negotiate a nuclear agreement, reiterating that Tehran must not acquire nuclear weapons. In a post on Truth Social, he cautioned that time was running out and threatened that any future military action would be far more severe than previous US strikes carried out in June.

Trump also confirmed that a US naval strike group, led by the aircraft carrier USS Abraham Lincoln, has been deployed to Middle Eastern waters and is prepared to act if required. US media reports suggested Washington is considering military options after nuclear talks stalled.

Iran’s Foreign Minister Abbas Araghchi responded by warning that Tehran would retaliate immediately to any attack, stating that Iranian forces remain on high alert, though he stopped short of ruling out renewed diplomacy.

Analysts said gold’s behaviour reflects deeper concerns about global confidence rather than traditional inflation or recession fears. Stephen Innes noted that bullion is increasingly acting as an alternative to fiat currencies, signalling growing doubts over policy credibility.

Gold Prices Hit Record High in Pakistan

Meanwhile, oil prices climbed on fears of supply disruptions from the Middle East, with US crude hitting its highest level since September and Brent reaching levels last seen in August.

Stock markets across Asia declined, led by losses in Tokyo, Hong Kong, Shanghai, Sydney and Seoul. Jakarta plunged sharply, extending earlier losses after MSCI raised concerns over market governance and delayed changes to Indonesian index weightings.

The US dollar remained under pressure despite assurances from Treasury Secretary Scott Bessent that Washington maintains a strong-dollar policy. Attention now turns to Trump’s potential pick to replace Federal Reserve Chair Jerome Powell, with expectations mounting that a more dovish successor could increase pressure for rate cuts.