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Will gold and silver prices break records? Experts raise alarm amid US-Iran-Israel conflict
Gold and silver prices are expected to rise sharply on Monday amid escalating Israel-Iran tensions, pushing investors to safe-haven assets.
Gold and silver prices are anticipated to open significantly higher on Monday due to increasing tensions between Israel and Iran, which are driving investors towards safe-haven assets, according to market experts on Saturday.
The circumstances intensified following Israel's initiation of preemptive missile strikes on Iran, which resulted in explosions in Tehran and heightened concerns of a wider conflict. Experts indicate that this unpredictability is driving investors towards safe-haven assets such as gold and silver.
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Will gold and silver prices touch $6,000 and $200 respectively soon?
Prices have surged in reaction to both geopolitical threats and global economic influences, including U.S. inflation statistics and increasing gold imports from China. As gold approaches $5,300 and silver nears $93, market participants are keenly observing whether these metals might attain $6,000 and $200, respectively.
Market analysts warn that although increases are feasible, achieving $6,000 for gold or $200 for silver will necessitate persistent demand and continuous global instability.
According to Vandana Bharti, the Assistant Vice President of Commodity Research at SMC Global Securities, it is anticipated that MCX futures for gold may reach ₹1.70 lakh for every 10 grams of 24-carat purity, while silver could rise to ₹3 lakh in the near term, Money Control reported.
On Comex, the spot price of silver increased by 7.85 percent, reaching 93.82 per ounce, and gold was priced at $5,296 per ounce as of February 28 at 9:33 am GMT. On the preceding Friday, gold concluded the MCX session with a slight decline of 0.08 percent, settling at ₹1,61,971 per 10 grams, while silver fell by 0.23 percent to ₹2,81,990 per kilogram, influenced by profit-taking after the recent price increase.
“The escalation in the US-Iran war buzz is expected to fuel uncertainty, and investors are expected to look at gold and silver as a safe-haven asset. We expect a gap-up opening for precious metals,” DT Next reported, citing an expert.
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Why are gold and silver prices rising at this moment?
Prices are on the rise primarily due to the uncertainty stemming from tensions between Israel and Iran. During geopolitical crises, investors tend to favor safe-haven metals. The decline in U.S. Treasury yields enhances the appeal of gold by reducing opportunity costs. Additionally, increasing U.S. producer prices indicate a potential for higher inflation. There has been a significant surge in China’s gold imports through Hong Kong, contributing to global demand. Analysts assert that these combined elements are propelling the prices of gold and silver upward.
What are current gold and silver prices?
On Friday, gold reached nearly a one-month peak, trading at $5,230.56 per ounce. U.S. gold futures for April delivery concluded at $5,247.90. This increase represents a 7.6% gain for February so far.
Silver also experienced an uptick, with spot prices increasing by 4.8% to $92.60 per ounce, targeting a 9.7% monthly gain.
