Gold surges past $5,500, silver tops $120 amid Iran tensions, US Fed pause and weakening dollar
&imwidth=600&imheight=450&format=webp&quality=medium "Gold surges past $5,500, silver tops $120 amid Iran tensions, US Fed pause and weakening dollar")
File photo of a worker polishing bullion bars at a facility. Photograph: (AFP)
Gold has already gained more than 27% this year, following a 64% jump in 2025. The precious metals now rival major tech stocks in total market value, as investors flock to gold and silver amid global uncertainty. These precious metals are considered safe-haven assets.
Gold shattered records on Thursday by surging past $5,500 per ounce for the first time ever, and silver vaulted past $120 as the surge in precious metals is being driven by escalating geopolitical and economic tensions, a weakening dollar, sustained safe-haven demand, and the US Federal Reserve’s decision to hold interest rates steady. Gold prices set the new record amid US President Donald Trump’s threats of military action against Iran. Gold has already gained more than 27% this year, following a 64% jump in 2025.
Spot gold shot up 2.7% to $5,546.29 an ounce after hitting a record high of $5,594.82 earlier in the day. The yellow metal has hit record highs for nine straight sessions in one of the most incredible rallies in precious metals history. Silver followed suit and crossed $120 per ounce, with sharp gains extending from its already strong 2025 performance.
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Precious metals now rival major tech stocks in total market value
The precious metals now rival major tech stocks in total market value, as investors flock to gold and silver amid global uncertainty.
This surge in metals is driven by the fears of impending war in Iran and tensions between the US and NATO over Greenland, further adding to financial and geopolitical uncertainty.
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The latest peak came after Trump said a “massive Armada” was on its way to Iran and that US forces were prepared to act with “speed and violence, if necessary”.
These precious metals are considered safe-haven assets.
Gold considered safe haven amid economic uncertainty
Gold has been historically prized by investors for its tendency to hold its value, particularly during periods of economic uncertainty or upheaval.
The precious metal soared 64 per cent in 2025, a year marked by Trump’s return to the White House and his radical shake-up of international trade and institutions.
Other factors include a weak US dollar, central banks buying up metals, and expected interest rate cuts by the US Federal Reserve this year.
Experts forecast further upside
Moreover, market and bullion analysts are predicting further upside.
Bank of America forecasts $6,000 per ounce by spring 2026, calling it a near-term possibility amid the current frenzy, while JP Morgan sees potential for $6,000 longer-term, driven by central bank and investor demand.
The metal’s stellar run has also been aided by the declining popularity of other traditional “safe haven” assets such as government bonds, whose lustre has dimmed amid anxiety about the massive debt held by advanced economies, including the US.
