Gold breaks $5,500 as geopolitics, Fed stance fuel rally global

Gold prices climbed to fresh record levels on Thursday, crossing $5,500 an ounce as geopolitical risks and the US Federal Reserve’s latest policy decision boosted demand for safe-haven assets. The surge comes as tensions between Washington and Tehran intensify and investors reassess interest rate expectations, factors with global implications followed by economies such as Türkiye.

Precious metals extend historic rally

Spot gold advanced sharply during early trading, approaching the $5,600 level after gaining more than 2% in a single session. The metal has more than doubled over the past year and continues to benefit from geopolitical uncertainty, trade frictions and earlier interest rate cuts by major central banks. Silver followed a similar path, rising to an all-time high and posting triple-digit gains on an annual basis.

US-Iran tensions add to market stress

Market nerves were further unsettled after US President Donald Trump said a large naval force was moving toward Iran, warning Tehran to reach an agreement or face severe consequences. He said the fleet, led by the aircraft carrier Abraham Lincoln, was ready to act “with speed and violence if necessary,” adding to fears of a wider regional confrontation.

Fed signals patience on rates

The Federal Reserve kept its benchmark interest rate unchanged at 3.5% to 3.75%, describing US economic activity as steady. Fed Chair Jerome Powell said policymakers could consider easing if price pressures linked to tariffs begin to fade. “If we see that happening over the course of the year, that would allow us to loosen policy,” he said, shaping expectations across global financial markets.