Gold prices surged during trading on Wednesday, breaking through the $5,100 per ounce barrier, driven by increased demand for the precious metal as a safe haven amid escalating geopolitical tensions between the United States and Iran, and the resulting uncertainty in global markets.
Gold futures for April delivery rose 3.5%, or $173.10, to $5,108.10 an ounce, while the spot price of gold climbed 2.7% to $5,079.36 an ounce.
As for other metals, silver prices jumped significantly, with March futures contracts rising 5.35% to $87.76 an ounce, and spot silver prices climbing about 3.35% to trade near $88.01 an ounce, indicating a strong return of momentum for precious metals.
In contrast, the US dollar index – which measures the currency’s performance against a basket of six major currencies – fell slightly by 0.1% to settle at 97.34 points, providing additional support for gold and dollar-denominated metal prices.