Closing post
Time to wrap up…
Investors are betting on geopolitical turmoil and disruption to oil flows, amid growing speculation that Trump could order a strike on Iran amid an impasse over Tehran’s nuclear programme.
Oil prices rallied overnight, with both Brent crude and WTI both rising 4%, before continuing to make gains in Thursday’s trading session.
As of 3pm on Thursday, Brent was up 1.95% at $71.72 per barrel while WTI rose 2.12% to $66.67 per barrel.
Jitters are starting to spread over the potential fallout, with prospective shipping delays and global supply chain disruption likely to impact inflation expectations and weigh on interest rate decisions by central banks.
All eyes are now on any hints of escalation from the White House.
Gold could be poised for another spike if a Trump-ordered US strike on Iran send investors back to the safe haven asset.
Riz Malik, the director at Southend-on-Sea-based R3 Wealth, said:
Global instability often prompts a flight to safe assets, leading to a short-term sell-off of equities and a move into precious metals like gold, which often see increased demand.
A conflict during Ramadan will amplify the political tensions with neighbouring countries.
The spot gold price is currently up 0.23% at $4,991.58.
