Gold Shatters $5,600 Barrier as Trump Issues Ultimatum to Iran; Oil Surges on War Risk

Geopolitical risk premiums exploded across global markets on Thursday, driving Spot Gold (XAU/USD) to a historic high above $5,600 per ounce. The surge follows explicitly hawkish military signaling from Washington regarding Tehran, threatening to disrupt global energy supplies and safe-haven dynamics.

The Trigger: Major Strike and Naval Deployment

President Trump escalated tensions significantly, announcing via social media that a “massive fleet” is en route to the Iranian coast. The deployment comes amidst stalled nuclear negotiations and U.S. allegations of Iranian suppression of domestic protests.

Furthermore, Trump explicitly threatened a “new major strike” on Iranian nuclear targets if Tehran does not return to the negotiating table immediately. This rhetoric suggests a shift to direct military confrontation.

Market Data Snapshot

• Spot Gold (XAU/USD): Broke historic psychological barrier above $5,600.
• Silver: Rallying aggressively toward $120.
• WTI Crude Oil: Hit a four-month high trading above $63.60.

Technicals & Key Levels

• The precious metals complex has entered a “parabolic” phase, with Gold and Silver potentially pricing in a kinetic war scenario.
• Energy markets fear an Iranian retaliation closing the Strait of Hormuz (conduit for 20% of world oil supply).

Analysts note that as long as the US fleet steams toward the Persian Gulf, the path of least resistance for Gold and Oil remains higher, largely ignoring Fed rate policy.