Gold prices surge towards $5,000 an ounce and silver tops $102 as Trump’s Iran fleet warning spurs safe-haven demand, ending a turbulent week for stocks.
NEW YORK: Gold prices surged towards a record USD 5,000 an ounce on Friday as geopolitical tensions resurfaced. The rally followed a fresh warning from US President Donald Trump regarding Iran, which unsettled financial markets to close a turbulent week.
Trump told reporters the United States was sending a “massive fleet” toward Iran “just in case.” This revived investor concerns after a brief period of calm earlier in the week.
Fellow safe-haven asset silver also soared, blasting through USD 102 an ounce. The dollar retreated to a four-month low against the euro amid the renewed uncertainty.
Sentiment had improved over the previous two days after Trump pulled back from a threat to impose tariffs on several European nations. The threat was linked to their opposition to a US takeover of the Danish autonomous territory of Greenland.
European markets struggled for direction at the week’s end. Frankfurt closed marginally higher while London and Paris fell into negative territory.
Wall Street presented a mixed picture, with the Dow retreating and the Nasdaq pushing higher. Intel plunged 17% after issuing lackluster earnings expectations.
Asian markets had closed higher earlier in the day. Analysts said Trump’s willingness to threaten tariffs over various issues continues to rattle trading floors.
This pattern has boosted demand for precious metals as safe-haven assets. Investors are also looking ahead to next week’s Federal Reserve meeting.
The Fed is widely expected to hold interest rates steady after three consecutive cuts. The meeting comes as US prosecutors have taken aim at Chair Jerome Powell, raising fears over the bank’s independence.
Trump is also considering candidates to replace Powell when his term ends in May. Elsewhere, the Bank of Japan left its key interest rate unchanged ahead of a snap election.
Next week’s US earnings calendar is packed with results from corporate giants including Apple, Microsoft, and Tesla.
