Gold soars past $5,500 an ounce as US President Donald Trump renews threats against Iran.

Gold prices have set a new record amid United States President Donald Trump’s threats of military action against Iran and the weakness of the US dollar.

Bullion surged past $5,500 an ounce on Thursday, extending an extraordinary rally that has seen the precious metal gain more than 20 percent in value since the start of the year.

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”.

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 percent in 2025, a year marked by Trump’s return to the White House and his radical shake-up of international trade and institutions.

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.

Asian stock markets opened mostly lower on Thursday, before rebounding in the afternoon. Japan’s Nikkei 225 was up about 0.2 percent as of 2:30pm local time.

Hong Kong’s Hang Seng Index was about .07 percent higher, while the SSE Composite Index in Shanghai was up about 0.1 percent.