The price of Gold (XAUUSD) surged nearly $95 or 950 pips to $4,023.95 per troy ounce in trades on Thursday. This sharp rise came to halt a four-day decline.
Gold had been under pressure due to decreasing expectations for a Federal Reserve interest rate cut in December and the achievement of a trade truce between the United States (US) and China.
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However, Gold’s price skyrocketed again after US President Donald Trump instructed the Pentagon (now known as the Department of War) to conduct a nuclear weapons test for the first time in 33 years.
Trump seemed to be provoked following Russia’s test of the 9M730 Burevestnik, a nuclear-powered cruise missile reported to have an unlimited range. During its tests, Burevestnik reportedly reached 14,000 kilometers, and Russian President Vladimir Putin described the missile as unique, asserting that no other nation possesses anything like it. Additionally, Putin ordered preparations for the infrastructure necessary to deploy the missile within the Russian armed forces.
In response to Trump’s nuclear testing plans, Russia has warned of “appropriate actions” should the United States violate the moratorium on nuclear weapons testing. A Russian spokesperson mentioned that the Burevestnik missile tests should not be interpreted as nuclear weapons testing but rather as a defense system exercise.
The escalating tensions between the US and Russia, especially in the context of nuclear weaponry, have reignited Gold’s appeal as a safe haven asset. As of Friday morning (October 31, 2025), Gold’s price has climbed back to approximately $4,045 per troy ounce.
