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Gold prices soared to a new all-time high of $5,595.44 per ounce on Thursday, climbing over 3%—or over $300 in value—in a single day.
Renewed geopolitical tensions drove the rally after U.S. President Donald Trump threatened military action against Iran.
Silver prices followed suit, rising 2% to reach $120.43 per ounce. Other precious metals also posted sharp gains, with platinum rising above $2,802 and palladium climbing to $2,135.20.
Oil prices also rose, with West Texas Intermediate (WTI) crude climbing 1.8% to $64.48 per barrel and Brent crude advancing 1.6% to $68.58 per barrel, partly due to fears of supply disruptions in the region, as a U.S. naval strike group remains deployed near Iran.
The surge reflects investor demand for safe-haven assets amid concerns of an escalating conflict in the Middle East.
Market analysts linked the metal rally to Trump's latest remarks urging Tehran to enter negotiations over its nuclear program while also warning of further attacks if tensions persist.
Trump posted a statement on Truth Social calling on Iran to return to negotiations quickly, writing, "Hopefully Iran will quickly "come to the table" and negotiate a fair and equitable deal—NO NUCLEAR WEAPONS—one that is good for all parties.
Time is running out; it is truly of the essence!" Referring to past U.S. strikes in June, Trump added: "The next attack will be far worse! Don’t make that happen again."
The U.S. naval presence in the region, including the aircraft carrier USS Abraham Lincoln, was described by Trump as an "armada" that is "ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary."
Iran’s Deputy Foreign Minister Abbas Araghchi issued a strong rebuttal, warning that any U.S. military move would be met with immediate and forceful retaliation.
While emphasizing that Iranian forces have their "fingers on the trigger," he did not close the door to the possibility of a renewed nuclear agreement.
The increase in commodity prices also comes amid a weakening U.S. dollar, which typically supports demand for dollar-denominated assets such as gold.
The U.S. Dollar Index fell to 96, its lowest in multiple years, amid speculation that the Trump administration may be comfortable with a weaker dollar stance.
The U.S. Federal Reserve delivered an uneventful policy statement this week, with no immediate change in interest rates. Though the announcement had little market impact, some traders remain optimistic that rates could be cut later this year.
Attention is now shifting to Trump’s upcoming nomination for the Federal Reserve governorship, with Kevin Hassett, Director of the National Economic Council and a close ally, seen as a leading candidate.
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