Gold prices surged to an all-time high of $2,954.69 per ounce on Thursday as investors sought refuge amid rising global economic uncertainty, inflationary pressures, and geopolitical tensions. Spot gold climbed 0.6% to $2,951.25, while U.S. gold futures advanced 1.1% to $2,969.30, marking the tenth record high this year.
The rally comes as concerns over U.S. tariffs, a weakening Iranian rial, and ongoing Federal Reserve policy uncertainty continue to weigh on global markets. Analysts point to mounting trade tensions after President Donald Trump announced plans to introduce new tariffs on lumber, cars, semiconductors, and pharmaceuticals within the next month.
"The $3,000 level seems to be having a magnetic effect on the market," said independent analyst Ross Norman. "Even though by most considerations the market is technically overbought, it seems determined to crack that magic level."
Gold has gained 12% so far this year, fueled by expectations of inflation, a stronger dollar in certain markets, and investors seeking hedges against economic instability. A major factor in the latest surge has been the dollar's rapid appreciation in Iran, where the open-market exchange rate hit IRR 938,000 per U.S. dollar, further devaluing the Iranian rial and increasing demand for gold as a safe-haven asset.
In Iran's domestic market, the benchmark Emami gold coin climbed IRR 1.87 million to IRR 78.58 million ($83.77), while the Bahar Azadi coin rose IRR 1.12 million to IRR 73.13 million ($77.96). Smaller denominations, including half and quarter coins, also saw significant gains.
The rise in gold has coincided with renewed scrutiny of Iran's foreign exchange policies, as members of Parliament push to impeach Economy Minister Abdolnasser Hemmati, accusing him of exacerbating currency market instability. However, President Masoud Pezeshkian has publicly defended Hemmati's economic policies, stating that currency decisions are made collectively by the government.
Silver has also benefited from market volatility, with spot silver gaining 1.2% to $33.12 per ounce. Other precious metals followed suit, with platinum rising 0.2% to $974.05 and palladium climbing 1.7% to $984.59.
Minutes from the Federal Reserve's latest policy meeting revealed concerns over rising inflation tied to Trump's proposed tariffs, leading to speculation that interest rate cuts may be delayed. Some analysts predict that further delays in monetary easing could drive gold prices beyond the $3,000 mark.
"While there is speculation that potential Ukraine-Russia peace talks could lead to some unwinding in gold, any weakness may be temporary," IG market strategist Yeap Jun Rong noted in a report.
Gold's bullish momentum has been further supported by concerns over global trade disruptions, particularly with China. Since taking office, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum, policies that have fueled market instability and increased demand for gold as a hedge against economic uncertainty.
