Gold prices staged a sharp rebound on Wednesday, climbing back above the key psychological threshold of $5,000 per ounce as renewed geopolitical tensions between the United States and Iran unsettled global markets.
Spot gold surged more than 2.5 percent to reach $5,001 per ounce. The rally followed reports from Washington suggesting that the administration of President Donald Trump is considering potential military action against Iran. Just days earlier, prices had slipped to around $4,900 per ounce amid signs of progress in nuclear negotiations between the two countries.
Silver also recorded significant gains, rising 5.7 percent to $77.7 per ounce, reinforcing the trend of investors shifting toward safe-haven assets amid heightened political risk and economic uncertainty.
Since the start of the year, precious metals have delivered strong performance. In January alone, gold jumped 13.2 percent, reaching a record $5,598 per ounce by month-end, driven by mounting geopolitical concerns and broader global instability. Although prices stabilized somewhat in February, the latest developments have reignited volatility across financial markets.
Market analysts note that as long as uncertainty surrounding major geopolitical flashpoints persists, gold is likely to remain a primary refuge for investors seeking protection from risk.
