July 30: Iraq’s Bloodless Coup That Was Followed by Rivers of Blood

Former Iraqi President Ahmed Hassan al-Bakr and his deputy Saddam Hussein. (AFP)
Former Iraqi President Ahmed Hassan al-Bakr and his deputy Saddam Hussein. (AFP)
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July 30: Iraq’s Bloodless Coup That Was Followed by Rivers of Blood

Former Iraqi President Ahmed Hassan al-Bakr and his deputy Saddam Hussein. (AFP)
Former Iraqi President Ahmed Hassan al-Bakr and his deputy Saddam Hussein. (AFP)

It’s unwise to corner Saddam Hussein and force him to accept a partner in governing Iraq. The Baath Party and Saddam himself don't favor partnerships.

The Baath Party, which regained power on July 17, 1968, has a history of significant and costly turning points.

The first major shift came on July 30 that year, enabling the party to consolidate power under President Ahmed Hassan al-Bakr, with Saddam as his deputy.

As a journalist, I spoke with some key figures from that time and felt it was important to share their stories with the readers of Asharq Al-Awsat.

The defeat of Arab armies in the 1967 war enraged the Arab public, who blamed their governments for what was termed a “setback” but was really a disaster.

Iraqi President Abdul Rahman Arif, who had succeeded his brother Abdul Salam, appeared weak, with a loose grip on the military and little popular support.

By the spring of 1968, rumors were spreading in closed circles about various factions plotting to seize power. Some expected the country to fall under military control.

The Baath Party leadership was keeping a close watch, fearing a coup. They began planning a return to power, seeking to avenge the 1963 events that led to bloodshed and the ousting of Abdul Salam Arif, whom they had initially helped bring to power.

Salah Omar al-Ali.

The leadership wanted to avoid a violent takeover and carefully considered their strategy.

A key figure was Col. Ibrahim al-Daoud, commander of the 20,000-strong Republican Guard. If al-Daoud resisted, a bloody battle could ensue at the palace gates. There was also the risk that such a conflict might pave the way for a third faction from the military to step in as a savior.

The Baathists decided to approach al-Daoud, hoping to win him over or at least neutralize him. They noted that al-Daoud was heavily influenced by his friend Abdul Razzaq al-Nayef, the deputy director of military intelligence, known for his strong influence and rumored ties to Western intelligence. Al-Daoud was thought to follow al-Nayef’s lead closely.

The complex task required cunning and was entrusted to al-Bakr, known for his military skills and political savvy.

The coup organizers secured the cooperation of officer Saadoun Ghaidan, who commanded a force stationed at the presidential palace, including several tanks.

Al-Bakr met with al-Daoud to reveal the plan to overthrow Arif. He urged him to keep the matter secret, swearing on the Quran that it would not be shared with anyone else, especially al-Nayef. However, al-Daoud quickly informed al-Nayef on July 15.

This leak put the Baath Party leadership in a tough spot. The secret was out, and al-Nayef, a man considered dangerous and rumored to have suspicious ties with Western intelligence, knew their plans. The success or failure of the coup now depended on his actions.

Salah Omar al-Ali, a key figure in the leadership, explained: “On the morning of July 16, we informed the civilian and military groups involved about the final details of their roles.”

“We initially planned to act on July 14, the anniversary of the 1958 revolution that established the republic, but practical issues delayed us.”

“On July 16, we retrieved hidden weapons and military uniforms for disguise. At 8 p.m., we met at al-Bakr’s house in the Ali al-Salih neighborhood on 14 Ramadan Street to finalize our plans, waiting for the operation at 2:30 a.m. Then, the unexpected happened.”

An armored vehicle is seen in front of the presidential palace after the 1968 coup. (Getty Images)

Shocking message

As the Baath Party’s regional leaders were finalizing their plans, there was a knock at the door. Al-Bakr answered and came back with a small note. He announced that it was from al-Nayef. The message read: “I know about your operation. I support you and am ready to help in any way. Trust in God.”

Al-Ali recalled that al-Bakr presented the message to the group, saying: “We need to discuss this and make a decision.”

The note, delivered by a lieutenant serving as al-Nayef’s aide, was shocking.

Although the messenger was a Baathist, his actions didn’t lessen the severity of the situation.

The group grew anxious and confused. Al-Nayef was known to be strong, very intelligent and ambitious, which made him a formidable figure. They considered the risks: if they canceled the operation, al-Nayef might reveal their plans, seeing it as a slight against him.

Canceling could be disastrous for the party, but involving al-Nayef was risky too. It was clear that al-Daoud had not kept his oath, complicating matters.

They ultimately decided to proceed and sent al-Nayef this message: “We intentionally kept you uninformed due to your sensitive position and concern for your safety. We informed Ibrahim al-Daoud to avoid putting you in an awkward position, knowing he would tell you. We are moving forward with the operation, and if successful, you will be Iraq’s Prime Minister, God willing.”

Essentially, they made two decisions: to entice al-Nayef with the prime ministership and to eliminate al-Nayef and al-Daoud as soon as possible. The task of storming the Republican Palace was given to the party’s regional leaders.

Before the operation, they gathered at the home of Abdul Karim al-Nadda, al-Bakr’s brother-in-law, who worked for the railway and lived near the radio station in the Salhiya area.

The emotions were high as the nine leadership members, including al-Bakr and Saddam, met with others, including Hardan al-Tikriti. The total number present was less than twenty. The plan required al-Daoud and Ghaidan to be waiting for them.

Storming the palace

The team put on military uniforms and officer badges. At the planned time, a military truck arrived, and they climbed aboard, while another group took two civilian cars. They reached the palace entrance dressed in their military gear and carrying rifles. Ghaidan was waiting at the tank battalion entrance and opened the gate for them. Several young party members, who had secretly trained to operate tanks, joined them.

They were surprised to find that the tanks around the palace were modern and the trainees had trouble operating them. Fortunately, one young man managed to start a tank and moved from one to another, helping them complete the encirclement of the palace.

They set up their command post at the tank battalion headquarters. Al-Bakr called Abdul Rahman Arif, who was asleep. The two men knew each other well. Surprised, Arif asked, “What’s going on?” Al-Bakr responded: “The revolutionary leadership has taken control of the country.”

“Please surrender to avoid any conflict. We guarantee your safety and that of your family. This is not a personal attack; it’s to prevent further bloodshed under your weak leadership. Surrender now.”

Finding the situation serious, Arif tried contacting division commanders outside Baghdad but got no response. Ten minutes later, al-Bakr called again, insisting Arif surrender. In a final warning, al-Bakr said: “If you don’t surrender, you’ll be responsible for your and your family’s safety.”

To reinforce the message, they fired artillery shells over the palace. Hearing this, Arif realized there was no negotiating and contacted them to arrange his surrender. Arif came out and was taken in a small military vehicle to the tank battalion headquarters.

At the start of the operation, a team was dispatched to arrest Prime Minister Taher Yahya at his home. This move marked the Baath Party’s return to power, achieved without any bloodshed.

Abdul Razzaq al-Nayef and Ibrahim al-Daoud.

Potential threats

When asked about Saddam Hussein’s actions during those crucial hours, al-Ali said: “Saddam acted just like the others; he wore a military uniform and carried a rifle, following the lead of the other party members.”

Despite his many criticisms today, Saddam’s bravery and ruthlessness were clear. At the time, he was not a dominant figure and did not control decisions. He was a loyal party member who followed orders.

After the Baath Party took power, its leaders saw Prime Minister al-Nayef and Defense Minister al-Daoud as potential threats.

Al-Ali, involved in the plot against them, described the situation: “We held a meeting to discuss our decisions, including removing al-Nayef and al-Daoud. Al-Bakr said we had to include al-Nayef because he knew our plan and could have turned against us. We promised him the prime ministership, and he did not betray us.”

“However, I was concerned that removing al-Nayef might be seen as treachery, given the bloody history with the Communists in 1963. I suggested we keep cooperating with him and reassess if his behavior changed. We agreed, and al-Nayef began his role as prime minister.”

A few days later, al-Bakr called an urgent meeting and urged the leadership to quickly remove al-Nayef. He explained that he was rapidly working against the party and had recruited military officers without realizing some were Baathists.

“Act fast before he can undermine us,” al-Bakr warned. “Plan his removal, and I’ll support whatever you decide.”

Officers salute al-Nayef before his ouster.

The next day, we met at the home of Saleh Mahdi Al-Ammash, the Interior Minister, since we feared al-Nayef might trap us if he knew our plans. We decided to remove both al-Nayef and al-Daoud.

We had military units in Jordan. We planned for al-Daoud to inspect them while secretly sending party members to arrest him and send him to Spain. At the same time, we would act against al-Nayef.

On July 30, al-Daoud was captured and sent to Spain. Meanwhile, we targeted al-Nayef. After lunch at the palace, he went to al-Bakr’s office. Saddam and I entered with rifles and demanded his surrender. At first, he resisted but then begged us, citing his family.

We needed to act quickly and discreetly. We told al-Nayef to leave as if nothing had happened and warned him not to signal his guards. He was escorted to a car by Saddam, who warned him not to resist. The car left through a rear gate, and al-Nayef was flown out to Morocco.



What Lies Ahead for Ukraine’s Contested Zaporizhzhia Nuclear Power Plant?

A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)
A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)
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What Lies Ahead for Ukraine’s Contested Zaporizhzhia Nuclear Power Plant?

A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)
A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)

The Zaporizhzhia nuclear power plant, Europe's largest, is one of the main sticking points in US President Donald Trump's peace plan to end the nearly four-year war between Russia and Ukraine. The issue is one of 20 points laid out by Ukrainian President Volodymyr Zelenskiy in a framework peace proposal.

Here are some of the issues regarding the facility:

WHAT ROLE MAY THE US PLAY?

Russia took control of the plant in March 2022 and announced plans to connect it to its power grid. Almost all countries consider that it belongs to Ukraine but Russia says it is owned by Russia and a unit of Russia's state-owned Rosatom nuclear corporation runs the plant.

Zelenskiy stated at the end of December that the US side had proposed joint trilateral operation of the nuclear power plant with an American chief manager.

Zelenskiy said the Ukrainian proposal envisages Ukrainian-American use of the plant, with the US itself determining how to use 50% of the energy produced.

Russia has considered joint Russian-US use of the plant, according to the Kommersant newspaper.

WHAT IS ITS CURRENT STATUS?

The plant is located in Enerhodar on the banks ‌of the Dnipro River and ‌the Kakhovka Reservoir, 550 km (342 miles) southeast of the capital Kyiv.

The Zaporizhzhia nuclear power plant has ‌six ⁠Soviet-designed reactors. They were ‌all built in the 1980s, although the sixth only came online in the mid-1990s after the collapse of the Soviet Union. It has a total capacity of 5.7 gigawatts, according to an International Atomic Energy Agency (IAEA) database.

Four of the six reactors no longer use Russian nuclear fuel, having switched to fuel produced by then-US nuclear equipment supplier Westinghouse.

After Russia took control of the station, it shut down five of its six reactors and the last reactor ceased to produce electricity in September 2022. Rosatom said in 2025 that it was ready to return the US fuel to the United States.

According to the Russian management of the plant, all six reactors are in "cold shutdown."

Both Russia and Ukraine have accused each other of striking the nuclear plant and of severing power lines to the plant.

The plant's equipment is powered by ⁠electricity supplied from Ukraine. Over the past four years these supplies have been interrupted at least eleven times due to breaks in power lines, forcing the plant to switch to emergency diesel generators.

Emergency generators ‌on site can supply electricity to keep the reactors cool if external power lines are cut.

IAEA ‍Director General Rafael Grossi says that fighting a war around a nuclear ‍plant has put nuclear safety and security in constant jeopardy.

WHY DOES RUSSIA WANT ZAPORIZHZHIA PLANT?

Russia has been preparing to restart the station but ‍says that doing so will depend on the situation in the area. Rosatom chief Alexei Likhachev has not ruled out the supply of electricity produced there to parts of Ukraine.

Oleksandr Kharchenko, director of the Energy Research Center in Kyiv, said Moscow intended to use the plant to cover a significant energy deficit in Russia's south.

"That's why they are fighting so hard for this station," he said.

In December 2025, Russia's Federal Service for Environmental, Technological and Nuclear Supervision issued a license for the operation of reactor No. 1, a key step towards restarting the reactor.

Ukraine's energy ministry called the move illegal and irresponsible, risking a nuclear accident.

WHY DOES UKRAINE NEED THE PLANT?

Russia has been pummeling Ukraine's energy infrastructure for months and some areas have had blackouts during winter.

In recent ⁠months, Russia has sharply increased both the scale and intensity of its attacks on Ukraine's energy sector, plunging entire regions into darkness.

Analysts say Ukraine's generation capacity deficit is about 4 gigawatts, or the equivalent of four Zaporizhzhia reactors.

Kharchenko says it would take Ukraine five to seven years to build the generating capacity to compensate for the loss of the Zaporizhzhia plant.

Kharchenko said that if Kyiv regained control of the plant, it would take at least two to three years to understand what condition it was in and another three years to restore the equipment and return it to full operations.

Both Ukrainian state nuclear operator Energoatom and Kharchenko said that Ukraine did not know the real condition of the nuclear power plant today.

WHAT ABOUT COOLING FUEL AT THE PLANT?

In the long term, there is the unresolved problem of the lack of water resources to cool the reactors after the vast Kakhovka hydro-electric dam was blown up in 2023, destroying the reservoir that supplied water to the plant.

Besides the reactors, there are also spent fuel pools at each reactor site used to cool down used nuclear fuel. Without water supply to the pools, the water evaporates and the temperatures increase, risking fire.

An emission of hydrogen from a spent fuel pool caused an explosion in Japan's Fukushima nuclear disaster in ‌2011.

Energoatom said the level of the Zaporizhzhia power plant cooling pond had dropped by more than 15%, or 3 meters, since the destruction of the dam, and continued to fall.

Ukrainian officials previously said the available water reserves may be sufficient to operate one or, at most, two nuclear reactors.


Egypt, Trump Reaffirm Strategic Alliance in 2025 amid Regional Turmoil

Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)
Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)
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Egypt, Trump Reaffirm Strategic Alliance in 2025 amid Regional Turmoil

Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)
Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)

After months of speculation over the trajectory of Egyptian-US relations, fueled by persistent talk of strain and an impending rift, a high-level meeting between President Donald Trump and President Abdel Fattah al-Sisi in Sharm el-Sheikh reaffirmed the resilience of the strategic alliance between Cairo and Washington, even as the region remains in turmoil.

The meeting followed a turbulent period marked by Trump’s adoption of a proposal to relocate Gaza’s population, an idea firmly rejected by Sisi and one that prompted warnings of a diplomatic crisis between the two longtime allies.

The subsequent signing of a Gaza peace agreement in Sharm el-Sheikh sent a clear signal that, despite sharp disagreements over policy, the foundations of the bilateral relationship remain intact.

Early in Trump’s second term, media reports said Sisi had scrapped plans to visit Washington. As the year draws to a close, speculation has said that the visit may happen. Trump has acknowledged Sisi as a friend and said he would be happy to meet him as well.

Trump’s election victory late last year raised Egyptian hopes of strengthening the strategic partnership. Sisi voiced that expectation in a congratulatory post on X, stating that he looked forward to working together with Trump to achieve peace, preserve regional peace and stability, and strengthen the strategic partnership.

Those hopes were tested when Trump floated a plan to “clean out Gaza” and relocate its residents to Egypt and Jordan. Cairo rejected the idea outright, mobilized international opposition, unveiled an alternative plan for Gaza’s reconstruction and hosted an emergency summit on the issue in March.

Limited public engagement

David Butter, a research fellow in the Middle East and North Africa program at Chatham House, noted that the striking feature of Egypt-US ties over the past year has been their low public profile.

Aside from Trump’s appearance in Sharm el-Sheikh, there was not much happening in the open, he told Asharq Al-Awsat.

Amr Hamzawy, an Egyptian political scientist and director of the Middle East program at the Carnegie Endowment for International Peace, described the first year of Trump’s second term as difficult for bilateral relations.

He said it began with talk of displacement and a “Middle East Riviera” in Gaza, but Egyptian diplomacy succeeded in shifting the trajectory.

Trump’s peace plan, he said, ultimately signaled rejection of displacement and spoke of security and political tracks for Gaza and a broader political process for the Palestinian issue, though details remain unclear.

Hamzawy added that the year opened from a tough starting point that followed what he called President Joe Biden’s hesitant stance on Gaza, when displacement was first discussed.

After nearly a year of Egyptian political and diplomatic effort, he said, displacement dropped from Washington’s agenda, even if it remains a risk that cannot be ignored.

Historically, Egypt has been a pivotal state for US national security, given its geography, demographic weight and diplomatic role, according to a recent report by the Congressional Research Service.

Gaza, the main test

The Gaza war shaped Egyptian-US relations during Trump’s first year back in office. Washington backed Egyptian-Qatari mediation to halt the war. US Secretary of State Marco Rubio thanked Cairo after a truce was reached between Israel and Hamas in January.

When hostilities resumed, however, Egypt faced complex diplomatic choices with both Washington and Israel. It rejected Trump’s call to resettle Gaza’s population, while its reconstruction plan failed to gain US or Israeli acceptance.

Cairo also drew criticism from Trump for declining to join US strikes against Yemen’s Houthis, the Congressional Research Service (CRS) revealed.

Butter noted that ties with the Trump administration were strained over Gaza after Sisi canceled a Washington visit early in the year, following Trump’s “Middle East Riviera” remarks, which left contacts at a minimum.

He said Trump’s Sharm el-Sheikh visit, the signing of the Gaza agreement and the celebration of his plan’s success offered a chance to reset relations. Egypt, he added, has become indispensable to Trump’s administration in Gaza.

Hamzawy said Gaza dominated the first year of Trump’s term, giving Egypt a chance to restore its standing with US and European decision-makers as a key mediator. Cairo put its vision on the table, he said, shifting US thinking toward parallel security and political tracks and from talk of disarmament to limiting weapons.

Throughout the year, Egypt publicly counted on Trump to end the Gaza war. In July, Sisi urged him in a televised address to press for a halt, saying Trump was capable of doing so.

Analysts Daniel Byman and Jon Alterman wrote in Foreign Policy that Egypt is indispensable to international responses to the Gaza war, even if it remains a difficult partner for Washington and Israel. The conflict, they said, restored diplomatic focus on Egypt and strengthened its leverage.

Sara Kira, director of the European North African Center for Research, said relations in Trump’s second term differ from his first. The earlier term saw broad alignment and personal warmth from Trump, particularly on counterterrorism, she said. The second term has been marked by divergence.

That surfaced in April when Trump called for free passage for US commercial and military vessels through the Suez Canal in exchange for US efforts to protect the waterway.

Positive signals despite differences

Despite disagreements over Gaza, there were positive signs elsewhere. Early in the year, the US State Department froze new funding for most aid programs worldwide, exempting humanitarian food programs and military aid to Israel and Egypt.

Washington did not include Egypt on a travel ban list issued in June. Trump said Egypt was a country with which the United States dealt closely and that things there were under control. Egypt was also spared higher US tariffs. Cairo has repeatedly stressed the depth and resilience of the strategic relationship.

Kira said Egypt exerted maximum pressure to achieve peace and stop the Gaza war, eventually convincing Washington of its approach and reaching a peace agreement in Sharm el-Sheikh. She said Egypt acted pragmatically and astutely, reading Trump’s personality and US interests.

As talks on the second phase of the Gaza agreement stall, Egypt continues to rely on the Trump administration to advance its plan. Cairo remains in contact with Washington and is working with it to prepare a donor conference for Gaza’s reconstruction, which has yet to receive sufficient momentum from the Trump administration.

The dialogue extends beyond Gaza to Libya, Sudan, Lebanon and Iran, as well as water security, led by Ethiopia’s Grand Ethiopian Renaissance Dam (GERD), which Egypt fears could affect its Nile water share.

GERD

In mid-June, Trump stirred controversy in Egypt when he wrote on Truth Social that the United States had “stupidly” funded the dam Ethiopia built on the Blue Nile, triggering a severe diplomatic crisis with Egypt.

In August, the White House released a list of Trump’s foreign policy achievements, which included a purported agreement between Egypt and Ethiopia over the dam.

Trump has repeatedly spoken of his administration’s efforts to resolve the dispute, but those claims have yet to translate into concrete action.

Hamzawy said there is an opportunity for Washington to mediate and revive an agreement reached near the end of Trump’s first term.

Charles Dunne of the Arab Center Washington DC wrote recently that Trump’s stance may please Cairo but could also produce adverse outcomes if Washington does not assume a mediation role.

The United States hosted talks with the World Bank in 2020 during Trump’s first term, but they failed after Ethiopia refused to sign the draft agreement.

Military ties endure

Military cooperation continued largely as usual. Since 1946, the United States has provided Egypt with about $90 billion in aid, with a sharp increase after 1979, which successive administrations have framed as an investment in regional stability, according to the CRS.

For more than a decade, Congress has imposed human rights conditions on part of Egypt’s aid.

Between fiscal years 2020 and 2023, the Biden administration and Congress withheld approximately $750 million in military funding. Trump’s technical annex to the proposed fiscal 2026 budget seeks $1.3 billion in military assistance for Egypt without conditions, the CRS said.

Hamzawy said the administration is far from imposing conditionality, noting that relations rest on mutual interests between a major power and a positively influential middle power.

Since the Gaza war, the Biden and Trump administrations have accelerated US arms sales to Egypt. The State Department notified Congress of military sales totaling $7.3 billion. In July, the Pentagon announced that the State Department had approved the sale of an advanced air defense missile system to Egypt, valued at approximately $4.67 billion. Egypt also hosted the Bright Star military exercises in September.

Kira said ties with Washington are driven by interests and that Cairo has positioned itself as a core regional player.

Hamzawy said Egypt occupies a central place in US Middle East thinking, as Washington needs a spectrum of allies, with Egypt at the heart of that network.


Why Metal Prices are Soaring to Record Highs

A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
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Why Metal Prices are Soaring to Record Highs

A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP

Precious and industrial metals are surging to record highs as the year ends, driven by economic and geopolitical uncertainty, robust industrial demand and, in some cases, tight supply.

Below AFP examines the reasons for the surge in demand.

- Safe havens -

Gold and silver are traditionally seen as safe-haven assets, and demand has soared amid mounting geopolitical tensions, from US President Donald Trump's tariffs onslaught to wars in Ukraine and Gaza, as well as recent pressure by Washington on Caracas.

Investors are also uneasy about rising public debt in major economies and the risk of a bubble in the artificial intelligence sector.

These uncertainties are driving up gold and silver, with other metals now starting to see the impact as investors seek to diversify their portfolios, explained John Plassard, an analyst at Cite Gestion Private Bank.

"Metal is once again becoming insurance rather than just a speculative asset," he told AFP.

- A weak dollar -

Traditional safe havens like the dollar and US Treasuries have become less attractive this year.

Uncertainty around Trump's presidency and the prospect of further Federal Reserve interest rate cuts, have weakened the dollar, reducing its appeal to investors.

As a result, many investors are turning to gold and silver.

Gold has climbed more than 70 percent this year and passed $4,500 an ounce for the first time on Wednesday, while silver reached a record high of $72 an ounce, with prices up about 2.5 times since January.

A weak dollar is also boosting industrial metals, since commodities priced in dollars become cheaper for buyers when the currency falls.

- Fresh demand -

Industrial demand has surged in recent months, driven by the rise of artificial intelligence and the energy transition.

Copper, used for solar panels, wind turbines, electric vehicle batteries and data centers, has seen strong gains as a result.

Prices hit a record on Wednesday, topping $12,000 a ton, helped further by China, the world's largest copper consumer, announcing new measures to boost demand.

Aluminium, a cheaper alternative to copper, and silver are also benefiting from the AI boom and the shift to renewable energy.

Platinum and palladium, used in car catalytic converters, have also risen, reaching a record high and a three-year high respectively, after the European Union decided to allow sales of new internal combustion vehicles beyond 2035.

- Tight supply -

Copper prices have been lifted this year by fears of US tariffs, prompting companies to stockpile ahead of their introduction, with duties imposed on semi-finished products and potentially extending to refined copper.

Supply risks from disruptions at mines in the Democratic Republic of Congo, Chile and Indonesia have added to the price surge.

Physical markets for silver, platinum, and aluminium are also tight.

According to Ole Hansen, an analyst at Saxo Bank, thin holiday trading, which increases volatility, and investor fear of missing out have further amplified the rise at the end of the year.