Spot gold fell sharply on Thursday after earlier surging to a fresh all-time high near $5,600 per ounce, as intense safe-haven demand faded following a rapid risk repricing. The rally had been driven by reports that U.S. President Donald Trump was considering a new military strike on Iran.
Silver prices mirrored gold’s move, turning negative after also posting a record high earlier in the session.
At 10:34 ET (15:34 GMT), spot gold was down 4.6% at $5,166.98 per ounce, after briefly touching a record peak of $5,595.44. April gold futures slipped 3.1% to $5,171.14, having reached an intraday high of $5,625.89.
Spot silver dropped 6.5% to $100.02 per ounce, retreating sharply from its earlier record high of $121.65.
The recent surge across precious metals had shown little sign of slowing in recent weeks, supported by escalating geopolitical tensions that boosted demand for physical assets and traditional safe havens. A weaker U.S. dollar and ongoing uncertainty around U.S. policy also helped underpin the rally, while copper prices climbed to a record high on Thursday.
Despite the strong momentum, caution is beginning to emerge. Truist’s Keith Lerner downgraded gold to neutral, citing a less attractive near-term risk-to-reward profile following the metal’s exceptional run.
“Gold is now trading more than 40% above its 200-day moving average, which is a historic extreme,” Lerner said. “While momentum can persist and calling a top is notoriously difficult, this positioning leaves gold increasingly vulnerable.”
Trump weighs potential strike on Iran
According to a CNN report published Wednesday evening, Trump is considering a “major new strike” on Iran after talks over the country’s nuclear program and missile development reportedly stalled.
The report follows the deployment of additional U.S. naval assets to the Middle East and earlier threats of military action, which Trump framed as possible support for nationwide protests in Iran.
Earlier in the day, Trump stated on social media that Iran must agree to a “fair and equitable” deal with Washington and halt its nuclear ambitions. He also warned that any future U.S. attack would be far more severe than the strike carried out in mid-2025, which targeted Iran’s major nuclear facilities.
CNN added that the administration is now weighing airstrikes against Iranian leadership and security officials accused of killing protestors, along with further attacks on nuclear infrastructure.
Any escalation could significantly raise tensions in the Middle East, with Iran having pledged strong retaliation against further U.S. military action.
Geopolitical pressure linked to Washington has remained a key pillar of support for gold and other safe-haven assets, particularly after the recent U.S. incursion in Venezuela. Trump’s demands related to Greenland also contributed to market unease, although his rhetoric has softened in recent weeks.
Meanwhile, the Federal Reserve left interest rates unchanged, as widely expected, while presenting an upbeat outlook on the U.S. economy. However, Chair Jerome Powell declined to comment on questions regarding the Fed’s independence amid a Department of Justice investigation.
Platinum weakens, copper holds record gains
The sharp reversal in gold weighed on broader metal markets.
Spot platinum fell 3.7% to $2,521.80 per ounce, tracking losses across the precious metals complex.
Copper prices, however, remained elevated after participating in the broader rally. Benchmark copper futures on the London Metal Exchange surged more than 9% earlier in the session to a record high of $14,356 per tonne.
Copper was supported by expectations of additional policy measures aimed at stabilizing China’s struggling property sector. China is the world’s largest copper importer, with real estate accounting for a significant share of overall demand.
