Top Line
Early Thursday saw a significant rise in gold and silver prices as tensions between the U.S. and Iran escalated, accompanied by a weakening dollar. Silver surpassed the $120 mark, while gold increased by over $200, inching closer to a record high of $5,600.
Important Facts
As of 9:30 a.m. ET, gold was priced at about $5,535.10—up more than 4.3% today but slightly below the morning’s peak of $5,586.20.
Silver was trading at $121.10, reflecting nearly a 7% gain today and nearing its own all-time high of $121.79 reached earlier.
Gold and silver have experienced a considerable upswing since 2025, but this week has been particularly noteworthy, with gold rising $220 just on Wednesday. The dollar’s daily gain was unprecedented and marked the most substantial increase since March 2020, when prices surged due to the pandemic.
Jamie Dutta, a market analyst from Nemo Money, attributed this week’s surge to “geopolitical tensions between the U.S. and Iran, a weakening dollar, and market expectations of further Fed rate cuts pushing prices to record highs without end.”
This week, the dollar reached a four-year low. On Wednesday, President Trump announced a “massive armada” heading toward Iran and urged the country to pursue a fair nuclear deal.
Hao Hong, Chief Investment Officer at Lotus Asset Management, noted that gold and silver represent the “ultimate safe haven against extreme risks as geopolitical turmoil continues.”
Main Critic
Some analysts have expressed concerns, stating that the precious metals market has “collapsed” due to extreme price fluctuations and a mismatch between supply and demand. Maximilian Tomei, CEO at Garena Asset Management, remarked that the current surge “doesn’t necessarily correspond to the underlying demand” for the metals, leading him to conclude that the market is “broken.” Nikki Shields from MKS PAMP echoed this sentiment, suggesting that the market is “broken” given the unprecedented volatility and is “tactically overbought.”
Points to Note
The future trajectory of metal prices remains uncertain. Marko Kolanovic, former chief market analyst at JPMorgan, pointed out that silver could “almost certainly fall by up to 50% from these levels within a year” and that it is subject to price volatility. Meanwhile, Deutsche Bank predicted that gold prices could surpass $6,000 this year, especially in light of a weaker dollar.
Why Else Are Gold and Silver Soaring?
Several factors, including President Trump’s move to annex Greenland, tensions with Iran, and the capture of Venezuela’s Nicolas Maduro, are driving up precious metal prices. Concerns regarding the Federal Reserve’s independence also play a role, especially following Trump’s continued criticisms of Chairman Jerome Powell. Suki Cooper from Standard Chartered noted that worries about the Fed’s diminishing autonomy “will likely accelerate allocations to gold, particularly by retail investors.” Additionally, Carsten Menke from Julius Baer remarked that the recent spikes in metal prices are influenced by “political power games” both domestically and internationally. Silver’s demand is also increasing, fueled by its essential role in tech industries such as electric vehicle manufacturing and AI data centers.
