Gold prices hit a record above $5,500 an ounce amid President Donald Trump’s threats of military action against Iran and a weakening U.S. dollar.

The rally has pushed gold up more than 20% since the start of the year, following a 64% gain in 2025, driven by geopolitical tensions and uncertainty in global markets.

Investors continue to favor gold as a “safe haven” amid concerns over economic instability and declining appeal of government bonds.

Trump’s comments about a “massive Armada” heading to Iran and readiness for “speed and violence” fueled further demand for the precious metal, Al-Jazeera has reported.

Asian stock markets opened mostly lower on Thursday before modest afternoon gains, reflecting investor caution.