Can Israel-Iran war help silver hit a new record high past $121 and gold over $5,595?

Just over a week ago, gold and silver prices were gradually cooling off as the US and Iran maintained regular dialogue over Tehran’s nuclear programme, easing geopolitical anxieties. But the calm was shattered on Sunday when Israel, alongside the US, launched a barrage of missiles on Iran, killing its Supreme Leader Ayatollah Ali Khamenei and reigniting deep uncertainty across the region.

The two precious metals have enjoyed a remarkable run over the past year and a half. In 2025 alone, silver surged an astonishing 170%, while gold climbed 60%. The rally extended into 2026, with silver galloping to a record high of $121 and gold soaring to $5,594. However, a strengthening dollar, profit booking and easing geopolitical concerns triggered a sharp correction, culminating in a dramatic 27% plunge in silver in a single day on January 31.

Now, with tensions escalating again in the Middle East, the assassination of Iran’s top political leader in air strikes, and fears of a potential closure of the Strait of Hormuz driving crude prices higher, risk sentiment in equities has been rattled. Investors are once again seeking shelter in safe-haven assets such as gold and silver. The renewed turmoil brings back the same pressing question: what should investors do now?

Ponmudi R, CEO of Enrich Money, said Comex gold is trading in the $5,300–$5,500 zone following consolidation in recent sessions. The price is in strong upward momentum following a gap up, with the broader uptrend remaining firmly intact. Prices continue to hold above the key moving averages near the prior all-time high, gradually edging higher, signalling strengthening momentum. Strong buying interest is visible in the $5,100–$5,200 support band. A sustained breakout above $5,500–$5,600 could open the path towards fresh record highs.

For silver, he said the white metal is trading near $91–$96 after a strong recovery from recent lows. The broader bullish structure remains intact on higher timeframes. Prices have reclaimed major moving averages, signalling a transition from correction towards potential renewed strength. Strong buying interest is evident in the $85–$90 support zone.

A sustained recovery above $100–$105 could reignite momentum towards $110–$115 and potentially retest previous highs. The medium- to long-term outlook remains constructive amid favourable global cues from geopolitical developments and safe-haven buying, even with ongoing volatility.

Experts say gold is perhaps the finest barometer of global uncertainty. “We should expect gold to be repriced higher to fresh records as we enter a whole new era of geopolitical uncertainty,” independent analyst Ross Norman told Reuters. Also Read | NFO Insight: Will TRUSTMF Mid Cap Fund’s GARV and LIM strategy help identify quality mid-cap opportunities?

Markets quickly shifted into risk-off mode amid concerns that a broader conflict could destabilise the Middle East and disrupt crude flows through the Strait of Hormuz, a critical artery for global energy supplies.

Kyle Rodda, senior financial market analyst at Capital.com, said that unlike previous flare-ups in the conflict, there appears to be a strong incentive on both sides to continue escalating, raising the risk of a chaotic and prolonged period of uncertainty. “The dynamic for gold is pretty positive,” he added.

In a remarkable claim, gold prices could surge to $10,000 within five years, Chris Wood, Global Head of Equity Strategy at Jefferies, said, adding that the precious metal remains in a powerful structural bull market driven by geopolitical risk and central bank buying.

“In my view, gold can easily reach $10,000 within five years, easily,” the market veteran said in an interview with ET Now.

According to him, gold, along with oil stocks, remains one of the few effective hedges against escalating geopolitical risks. A potential additional catalyst, he suggested, could be a revaluation of gold held on the US Treasury’s balance sheet. He pointed out that US government gold is carried at a very low historical price, “I think it is $32 an ounce,” and said a revaluation is “definitely a possibility”. Such a move, he noted, could theoretically allow the government to monetise the Treasury balance sheet and buy back debt.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)