Comments: Gold and silver rally following Iran strikes

Both gold and silver have seen spikes in value since the conflict erupted, as investors move to safe-haven assets. These prices could continue to rise if the conflict continues.

However, Nikos caveats that the dollar can also attract safe-haven flows, and higher oil prices could increase the chances of Fed rate cuts, making the currency more attractive. Meanwhile, silver’s long-term outlook is threatened by the rollback of green policies in the US, AI deployment risks and speculative interest in the asset.

I hope these comments are of interest to you, and please see Nikos’ full thoughts below.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

Gold:

“Gold jumps after a US strike against Iran triggers a flight to safety, while the precious metal also acts as a hedge against potential oil-driven inflation as the conflict pushes crude prices higher. Risk aversion could persist, as there is potential for a protracted conflict with regional spillover risks. Furthermore, fresh Sino-US frictions could emerge as most of Iran’s oil goes to China. These developments add to tailwinds from lingering #Tariffs uncertainty and structural demand linked to dedollarisation and debasement trends, bringing bullion closer to new all-time highs.

“However, gold’s strength may be capped as the greenback can also attract safe-haven flows, while higher oil prices raise the bar for Fed rate cuts. In addition, the metal remains susceptible to volatility amid elevated speculative positioning.”

Silver:

“Silver is benefiting from safe-haven demand after US strikes against Iran sparked fresh geopolitical uncertainty with potentially broader ramifications, which could push prices towards new all-time highs. The conflict also reinforces structural forces supporting the metal, notably its role in the defence industry amid rising military budgets. Silver remains indispensable to the clean energy transition and the AI boom as technology companies continue to increase spending.

“Nonetheless, hostilities may heighten economic uncertainty alongside tariff-driven headwinds, which could dampen silver consumption. In addition, the rollback of green policies in the United States and risks to AI deployment may weigh on demand. A relatively thin market and elevated speculative interest could also trigger pullbacks and increased volatility.”