and extended their rally to fresh record levels during the Asian session as geopolitical risk reasserted itself as the dominant driver of precious metals pricing. Markets reacted swiftly after President Trump publicly addressed protests in Iran, saying that help was on the way, a signal interpreted by investors as a potential escalation in U.S. involvement and a further destabilization of an already fragile regional backdrop.
In an environment where political outcomes are highly uncertain and timelines are opaque, capital has continued to gravitate toward assets that offer insulation from policy shocks and sudden volatility.
Price action reflected that shift decisively. Spot gold climbed 1.1% to $4,634.75 per ounce after briefly touching $4,639.64 per ounce, while spot silver surged 4.5% to $90.84 per ounce after reaching an intraday high of $91.55 per ounce, according to ICE data.
The magnitude of the silver move relative to gold underscores the market’s sensitivity to risk spikes, with thinner liquidity and higher volatility amplifying flows when investor positioning turns defensive. The rally also signals that geopolitical hedging demand is layering on top of an already constructive fundamental backdrop, rather than replacing it.
For investors, the key point is that this move is not purely reactive. Elevated geopolitical risk reinforces an existing preference for precious metals as strategic portfolio anchors when confidence in political stability deteriorates. Gold continues to attract capital as a store of value in periods of potential conflict, while silver benefits from both safe haven flows and its historically higher beta to directional moves in precious metals.
The persistence of these flows suggests that markets are assigning a nontrivial probability to prolonged uncertainty rather than a rapid diplomatic resolution.
Looking ahead, investors will closely monitor developments in Iran and official signals from Washington for confirmation of whether tensions escalate or de-escalate. The base case is that ongoing uncertainty keeps safe haven demand firm, allowing gold and silver to consolidate near elevated levels rather than reverse sharply.
The key risk scenario is a sudden easing of geopolitical stress through unexpected diplomatic progress, which could trigger short-term profit-taking after an extended rally, particularly in silver where gains have been more aggressive.