Can Israel-Iran War Help Silver Hit New Record Past $121 and Gold Over $5,595?

Tensions between Israel and Iran have risen dramatically, leading to a strong reaction from global markets. Gold and silver prices have been gaining strength with this ongoing conflict. Experts are discussing whether silver can go above its previous record of around $121 per ounce and gold beyond its all-time high near $5,595 per ounce.

What Is Driving The Rally

The precious metals market has already experienced an extraordinary run. Silver surged nearly 170% in 2025, an exceptional move even for commodities, while gold rose roughly 60% over the same period.

Momentum carried into 2026. Silver eventually reached a record $121, while gold surged to $5,594 per ounce. The rally reflected a mix of factors:

• Persistent geopolitical tension

• Strong investor demand for safe assets

• Continued buying from central banks

But earlier this year, the rally began to cool. A stronger US dollar, combined with traders locking in profits, weighed on prices. Metals came under further pressure as tensions between the US and Iran briefly appeared to ease. The correction became dramatic on 31 January, when silver plunged 27% in a single day.

Now, the escalating conflict in the Middle East has revived the safe-haven trade, pushing investors to hedge against geopolitical uncertainty.

Independent analyst Ross Norman believes the response is natural. Gold, he said, has long served as the clearest indicator of global instability. As geopolitical risks intensify, the metal tends to be repriced higher.

Risk Considerations To Watch Out For

Even with renewed optimism, volatility remains a defining feature of the precious metals market.

According to Ponmudi R, CEO of Enrich Money, Comex gold is currently trading between $5,300 and $5,500 after a period of consolidation. The broader uptrend still appears intact. Prices continue to hold above important moving averages near previous record levels. Buying interest is particularly strong around the $5,100–$5,200 support zone.

If gold sustains a breakout above $5,500–$5,600, analysts believe the metal could move toward fresh record highs.

Silver is also attempting a recovery. After bouncing from its recent lows, the metal is now trading roughly between $91 and $96. The broader trend, especially on higher timeframes, still shows signs of strength.

Support has formed between $85 and $90, where buying interest has emerged repeatedly. If silver climbs above $100–$105, momentum could accelerate again. That move could push prices toward $110–$115, potentially retesting earlier highs.

That said, investors should stay cautious. Rallies driven by geopolitics tend to be erratic. One headline can push prices sharply higher. When tensions ease, those gains can disappear just as fast.

Looking Ahead

Some market veterans believe the current cycle may only be getting started.

Chris Wood, Global Head of Equity Strategy at Jefferies, argues that gold remains in a powerful structural bull market. In his view, the metal could potentially reach $10,000 per ounce within five years.

Wood also suggested that an additional catalyst could emerge from the United States itself. The gold held on the US Treasury’s balance sheet is currently valued at an extremely low historical price, around $32 per ounce.

A revaluation of that gold, he said, is a possibility which could theoretically allow the government to monetise assets and reduce debt pressure. If it happens, the implications for the gold market could be significant.

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Investor Takeaway

The sudden escalation in the Middle East has reminded investors how quickly market sentiment can change.

Gold and silver tend to benefit during periods of uncertainty. That pattern is playing out again. Safe-haven demand has returned, and the broader bullish structure in both metals remains intact.

But volatility is unavoidable. For investors, precious metals may continue to act as a hedge against geopolitical risk and market instability. The key is not chasing sudden spikes but maintaining disciplined exposure within a diversified portfolio.

Source:

Economic Times