Prices for gold and silver are trending higher as traders bet that the current war with Iran will be prolonged and continue beyond current expectations.
The spot price of gold (TVC: $GOLD) has risen about $50, or 1%, over the past 24 hours to trade at $5,200 U.S. per ounce.
Silver has risen more dramatically, climbing 2% to trade as high as $90 U.S. over the last day. Silver’s (TVC: $SILVER) price has tripled in the past year, while gold’s price has gained nearly 70%.
Expectations for reductions in oil prices, cooling inflation, and more interest rate cuts are all positive for precious metals such as gold and silver.
However, a prolonged war in the Middle East could also help to boost the price of both gold and silver as investors and central banks treat the metals as safe haven assets in times of strife.
Now in its second week, the conflict with Iran shows no signs of resolution despite the comments made by U.S. President Donald Trump in social media posts.
Iran’s government recently declared the Strait of Hormuz closed, which is where 20% of the world’s crude oil flows. There are also reports that Iran has planted mines in the waterway.
Consequently, Iraq has had to curtail its crude oil output and Saudi Arabia’s largest refinery has suspended operations, delivering a supply shock to the global economy.
At the same time, Trump continues to say that the U.S. is stepping up its bombing campaign that’s targeting Iranian sites and locations.
All the uncertainty and chaos are increasing safe-haven demand for both gold and silver, say commodities analysts.
COMTEX_475072892/2797/2026-03-11T14:00:43