Market News

Key Facts

The price of gold is about $4,886.70 per ounce as of 12:30 p.m. Wednesday, down about 2.5%.

Silver is down about 3% as of 12:30 p.m. Wednesday, trading at a price of $77.40.

Both metals have hit one-month lows: The last time gold and silver fell below $4,900 and $76, respectively, was on Feb. 18.

Metals prices have fallen consistently since the beginning of the Iran war in late February, with gold surpassing $5,400 and silver breaking $93 on Feb. 27, just one day before the United States and Israel launched attacks on Iran.

Gold has posted losses for six straight days, which Bloomberg reported is its longest losing streak since 2024, before the metal embarked on a record-breaking price rally that carried it to a record high in January.

Why Isn’t The Iran War Lifting Metals Prices?

Though gold and silver prices typically rise in price during periods of international conflict, neither metal has made gains throughout the nearly three-week war in Iran. Analysts from Sucden Financial said Wednesday metals prices are trading “in negative correlation with oil” as oil and energy prices surge. The analysts said precious metals prices will likely “remain choppy,” adding, “bullion may find some support from geopolitical uncertainty, but as long as oil absorbs the main safe-haven bid, upside will likely remain constrained.” Oil prices have surged in recent weeks, with Brent crude oil prices spiking about 5% past $109 on Wednesday, marking more than a 40% increase in price since the start of the war. Rising energy prices have also stoked inflationary fears and reduced expectations that the Federal Reserve will cut interest rates—which is stifling metals prices, as gold and silver typically surge following rate cuts, David Meger, director of metals trading at High Ridge Futures, told Reuters on Wednesday. Meger said he believes gold and silver are still facing safe-haven demand, but that demand isn’t lifting their prices because the metals are overwhelmed by other pressures. The U.S. dollar has also strengthened, which typically puts downward pressure on precious metals.

Key Background

War and international tensions have caused gold and silver to spike in the past. Gold prices jumped to a one-year high in 2022 after Russian forces invaded Ukraine. Earlier this year, analysts cited various global tensions as partial explanations for gold and silver’s historic price rally. Some factors included the United States’ capture of Venezuela’s Nicolas Maduro in January, as well as President Donald Trump’s tariffs and growing tensions with European leaders as he voiced a desire to annex Greenland.

Tangent

Gold and silver prices rose to record highs in January, capping a months-long rally. At their peaks, gold prices surpassed $5,600 and silver prices rose above $120. Prices crashed in late January after Trump said he would nominate Kevin Warsh to lead the Federal Reserve, whom analysts considered less likely to slash interest rates.