Gold, silver prices rise as US-Iran War heats up
Fearing war and seeking safe haven investments, investors turn to gold again.
Gold's wild ride continues, with the precious metal surging again as war heats up in the Middle East.
At the time of writing, the gold spot price is $5,326 USD per ounce. That's not far off the all-time high in January of this year.
Silver prices are jumping too. Silver is currently trading above $90 USD per ounce.
And if the war between the U.S. and Iran continues, the gold price may rise to new records.
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Gold a safe haven in uncertain times
Gold prices were already having a wild 12 months before the current hostilities began with the bombing of Iran and the ensuing hostilities spreading across the Gulf States and elsewhere.
Gold was trading at $4,332 USD an ounce on 2nd January this year. It soon jumped as high as $5,432.
And it's heading back that way again.
The reasons for this are complex but in short, investors flock to gold in uncertain times. The Trump administration is not exactly a beacon of stability right now.
The threat of tariffs, persistent inflation and global instability have made gold an attractive asset once more.
This peaked in January, with Australians lining up round the block to buy physical gold. A FOMO effect drove even more people to invest in gold.
Gold prices inevitably fell (lines of ordinary people buying gold is a pretty clear sign of impending volatility).
But with bombs falling all over the Middle East, from Tehran to Dubai, investors are throwing money at the safe haven asset again.
Silver in the mix
Silver is popular for a couple of reasons. One is the safe haven effect we see with gold.
But silver is also in demand for industrial use as a key element in semiconductors and solar panels.
Silver prices have risen even faster than gold in the last few months, but these prices are far more volatile.
In August 2025 silver was sitting just below $40 USD per ounce. By January it had hit $116, a 190% increase.
But then it plunged dramatically back down to the $70-80 range.
What's the future for gold and silver?
Gold and silver prices are definitely being pushed up by retail investors. That is, ordinary people reading the news and making impulsive investment decisions.
But that doesn't mean we've hit the top (although remember how prices fell in January after a frenzy of speculation). As long as there's war and global uncertainty, gold will likely be in demand.
It's one of these bizarre, amoral ironies of the market but a diplomatic solution to the US-Iran conflict tomorrow would be wonderful for humanity and bad for gold prices.
If the fighting escalates we'll probably see gold jump even higher in the short term. Investments in precious metals right now are a volatile bet in a volatile world.
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