Gold surges past $5,000 amid US-Iran tensions
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Gold prices continued to gain on Wednesday, driven by their appeal as a safe asset, after renewed geopolitical tensions between the US and Iran boosted the latest rise in the yellow metal, which yesterday recorded its best daily performance since 2008.
Spot gold rose 2.7% to $5,071.79 per ounce at 03:53 GMT, after jumping 5.9% on Tuesday, its largest daily gain since November 2008. Gold reached a record level of $5,594.82 last Thursday, according to Reuters.
US gold futures for April delivery jumped 3.2% to $5,092 per ounce.
Jigar Trivedi, chief research analyst at Indus Ind Securities, said: "Gold prices rose again, approaching the $5,000 level… Geopolitical tensions increased the metal's appeal as a safe haven after US forces shot down an Iranian drone."
The US military announced on Tuesday that it had shot down an Iranian drone that approached the aircraft carrier Abraham Lincoln “in a hostile manner” in the Arabian Sea.
Axios reporter Barak Ravid cited an Arab source saying nuclear talks between the US and Iran are expected to be held in Oman on Friday.
Separately, US President Donald Trump signed a spending agreement into law on Tuesday, ending the partial government shutdown.
The closely watched January jobs report will not be released on Friday due to the partial shutdown.
Investors are increasing bets on higher long-term Treasury yields, amid expectations that new Federal Reserve Chair Kevin Warsh will push to cut interest rates while reducing the central bank’s balance sheet.
Investors expect at least two US interest rate cuts in 2026 and are awaiting private jobs data from ADP later today for more indications of the Federal Reserve’s policy path.
The non-yielding precious metal tends to rise when interest rates fall.
Other precious metals saw gains as well: spot silver rose 3.2% to $87.84 per ounce, after reaching a record $121.64 last Thursday. Spot platinum increased 2.9% to $2,273.70 per ounce, following an all-time high of $2,918.80 on January 26, while palladium rose 3% to $1,784.67.