Gold Soars Past USD5,000 Again

(MENAFN) Gold prices staged a sharp recovery Wednesday, reclaiming the psychologically critical $5,000-per-ounce threshold after briefly retreating on optimism surrounding US-Iran diplomatic overtures — only to reverse course as reports emerged that Washington may be gearing up for military action.

Spot gold climbed more than 2.5% to $5,001 per ounce as of 1540 GMT, erasing the previous session's losses as geopolitical anxiety returned to the fore. The rebound came on the heels of reports indicating the Trump administration is actively preparing for a potential military strike against Iran — a development that reignited haven demand for the precious metal.

One White House advisor was cited in reports as warning there is a "90% chance we see kinetic action in the next few weeks" — language that jolted markets and sent investors scrambling back into safe-haven assets.

Gold had slid to approximately $4,900 on Tuesday after Iran announced it had reached "guiding principles" with the US on nuclear negotiations, briefly lifting risk sentiment and dampening bullion's appeal. Wednesday's rebound underscored how quickly that optimism unraveled.

Silver mirrored gold's upward move, surging 5.7% to $77.7 per ounce.

The broader backdrop for gold remains exceptionally bullish. The metal posted a 13.2% gain in January — its strongest monthly performance since September 1999 — fueled by mounting global geopolitical risks. February, by contrast, saw prices hold largely flat as tensions appeared to ease and the US Federal Reserve opted to keep interest rates unchanged.

Having opened 2026 at $4,313 per ounce, gold has had a remarkable run, scaling to an all-time record of $5,598 on January 29 before pulling back.

Eyes now turn to the Federal Reserve, with investors closely awaiting the minutes from the central bank's January 16–17 policy meeting, due Wednesday, for fresh signals on the trajectory of US monetary policy.

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