Beirut: Gold prices have set a new record amid United States President Donald Trump's threats of military action against Iran and the weakness of the US dollar. Bullion surged past $5,500 an ounce on Thursday, extending an extraordinary rally that has seen the precious metal gain more than 20 percent in value since the start of the year.

According to National News Agency - Lebanon, the escalation in geopolitical tensions and currency fluctuations have contributed significantly to the rising demand for gold, traditionally seen as a safe haven asset. Investors are flocking to gold as uncertainties surrounding potential military conflicts and economic instability continue to loom large on the global stage.

Analysts suggest that the ongoing situation could further drive up gold prices as market participants seek to safeguard their investments against the backdrop of international turmoil. The weakening of the US dollar, which has been influenced by various economic factors, has also played a crucial role in the recent surge of gold prices.

Market experts are closely monitoring the developments in the Middle East and the US economic policies, as these factors are expected to influence the future trajectory of gold prices. The record-breaking price of gold highlights the complex interplay between geopolitical events and global financial markets.