Gold prices surge to over $5,500 due to global market volatility

US President Donald Trump’s comments on Iran have led to a surge in gold prices, with the precious metal reaching a new record high.

Gold prices surpassed $5,500 an ounce on Thursday, following a significant increase in value since the start of the year. The metal has gained over 20 percent in value so far this year, exceeding its previous peak in 2025. This rise is attributed to Trump’s recent statements regarding military action against Iran and the current state of the US dollar.

Trump stated that a “massive Armada” was on its way to Iran and that US forces were prepared to act with “speed and violence, if necessary”. The comments led to an increase in gold prices, which have historically been seen as a safe-haven asset during periods of economic uncertainty or upheaval.

The metal’s value has also been influenced by the decline in popularity of other traditional assets such as government bonds. Anxiety about the massive debt held by advanced economies, including the US, has contributed to this trend.

Asian stock markets experienced mixed results on Thursday, with Japan’s Nikkei 225 rising 0.2 percent and Hong Kong’s Hang Seng Index increasing by 0.07 percent. The SSE Composite Index in Shanghai also rose 0.1 percent.

Source: Al Jazeera