Gold prices surged sharply on Thursday morning as energy markets jolted higher following fresh Iran-related rhetoric from U.S. President Donald Trump, briefly sending oil prices up by as much as 5% intraday and reigniting demand for hard-asset hedges.
The move in gold came as Brent crude punched back above the $70 a barrel level earlier in the session, after Trump warned that military action against Iran remained on the table if tensions escalate further.
The remarks brought geopolitical risk back into oil markets that had recently been driven mostly by macro trends and inventory data, refocusing attention on Middle East supply risks.
Energy traders pointed to Iran’s central role in global supply risk, particularly given its crude exports, its position along key shipping routes, and the narrow margin of spare capacity currently available outside a handful of OPEC+ producers. Even brief price spikes reflected how quickly risk premiums can return when rhetoric shifts, especially in a market where physical balances remain tight.
Gold followed oil higher as investors moved to hedge against renewed volatility tied to energy prices.
According to live market coverage from the Wall Street Journal, bullion prices swung sharply throughout the session as traders reacted to rapid changes in crude, equities, and the dollar. The price action highlighted how closely gold has become tethered to energy-driven risk signals rather than purely monetary ones.
Gold has already been trading at record levels in recent months, supported by rising geopolitical risk, steady central bank buying, and concern over government debt and spending. Oil price shocks have added to the move, reviving fears that inflation pressures could re-emerge rather than continue to fade.
The reaction to Trump’s remarks reflected positioning as much as fundamentals, with markets primed for sharp moves after a period of relative calm.
By Charles Kennedy for Oilprice.com
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