The ongoing military conflict between Israel and Iran has triggered a surge in global gold prices, as investors rush toward safe-haven assets amid rising geopolitical tensions. Following Friday’s upward trend, gold prices continued to climb on Saturday morning, along with a slight increase in silver prices.
According to GoldPrice.org, the price of gold rose by $54.02 per ounce — an increase of 1.60% — bringing it to $3,433.47 in the global spot market. Silver also saw a marginal rise of $0.09 per ounce, or 0.25%, reaching $36.32 in the spot market and $36.35 in futures trading. Gold futures prices also surged to $3,452.80 per ounce, reflecting heightened investor anxiety stemming from the intensifying Middle East conflict.
On Friday, spot gold prices jumped by 0.9% to $3,417.10 per ounce, as Israel and Iran launched retaliatory attacks. The resulting uncertainty has prompted investors to seek the stability traditionally offered by gold, a trend that has persisted through the weekend. The current price levels are approaching the all-time high of $3,500 per ounce recorded in April this year.
Analysts Predict Potential Slowdown—But With Caution
Despite the recent upward momentum, market analysts suggest that gold futures may peak near $3,444, assuming no further escalation in the region. A de-escalation over the weekend could bring short-term relief, potentially causing gold prices to retreat slightly. Gold has long been regarded as a secure investment during times of geopolitical uncertainty. The escalating conflict in the Middle East has reaffirmed this status, driving up global demand.
Analysts also point to broader economic factors influencing gold prices. These include speculation over potential interest rate cuts by the US Federal Reserve, which would make non-yielding assets like gold more attractive. Many investors are locking in their positions now, fearing rapid market shifts.
Uncertainty in Global Trade Talks Fuels Further Caution
The recent upward trend in gold prices was already in motion due to uncertainty surrounding trade talks between the United States and China. Despite some signs of progress, the absence of a clear trade agreement has left investors wary.
In a separate development, Goldman Sachs lowered its forecast for a US recession from 35% to 30%, citing President Donald Trump’s renewed involvement in trade negotiations. This has brought a degree of optimism back to the markets, although volatility remains.
According to The Economic Times, gold prices are expected to remain volatile in the coming days. Should tensions between Israel and Iran worsen, spot prices could exceed the $3,500 threshold, driven by rising demand for “safe haven” investments.
Economic factors such as inflation trends, global trade flows, and upcoming decisions from the US Federal Reserve will continue to shape commodity prices, including gold and silver, in the short term.
In an environment marked by political instability and economic uncertainty, gold remains a preferred refuge for investors worldwide.