Gold and Silver Prices Jump Amid US-Iran Tensions

 

Gold and Silver Prices Jump as US-Iran Tensions Drive Safe Haven Demand

(Bullion News Network) – Precious metal prices continued to rise on Friday as heightened tensions between the United States and Iran drove safe haven demand higher. The spot price of gold gained nearly $100 per troy ounce, crossing $5,250/ozt. Silver saw a larger percentage gain, adding approximately $5.70/ozt to close the week at more than $94.10 per troy ounce. The price action favored silver, driving the gold-silver ratio more than 2.4 points lower to below 65.30:1. Platinum and palladium also performed well to close the trading week, with platinum’s $82.20/ozt gain outpacing palladium’s $9.13 per troy ounce. Safe haven assets may be in for another volatile week as traders brace for another U.S. employment report scheduled for Friday, March 6.

Last week, U.S. President Donald Trump told reporters he was weighing the possibility of conducting strikes on Iran in order to pressure the country into accepting a new nuclear deal. Today, the U.S. leader explained that he would “love not to” conduct strikes on Iran, but that “sometimes you have to.” Vice President JD Vance said in a Washington Post interview that he is “skeptic of foreign military interventions” and sees very little chance that the United States will enter another prolonged conflict in the Middle East under President Trump. Still, the prospect of a fresh series of strikes on Iran has American markets feeling uneasy – and some investors are turning to safe haven assets to mitigate their risk exposure. 

Analysts last week said that a second strike on Iran could be more costly to global markets than the “12-day war” of last year. Because of the United States military’s extraction and trial of Venezuelan President Nicolás Maduro, Iranian leadership may believe that regime change is a core objective of a renewed series of U.S. operations in Iran. Efforts to raise the costs of conducting military action in Iran could drive oil prices higher and put pressure on the supply chain of oil and other goods transported through the region. Gold prices gained throughout the week as speculation surrounding a potential military operation grew, with prices pulling back on Tuesday before gaining on Wednesday, Thursday, and Friday. Silver prices were more volatile on the week but peaked at a three-week high of more than $94/ozt on Friday.

Next week, traders will be able to review a fresh U.S. employment report, which could have major ramifications as the Federal Reserve prepares to discuss interest rates at its March meeting. The FOMC is largely expected to leave interest rates unchanged. CME FedWatch projects the probability of a rate cut at the March 18 meeting at 5.4%, down from 16.7% one month ago. Employment data will play a crucial role in the Fed’s decision-making process. A stalling labor economy drove interest rates down for three consecutive months to end 2025, but recent labor reports outpaced expectations while slowing inflation gave the FOMC an opportunity to wait and see before continuing to ease policy. The median forecast projects job creation to slow to 54,000 in February, down from a surprise 130,000 in January. Precious metals like gold tend to thrive in environments characterized by falling rates, so an especially damaging report could drive prices higher on rate cut speculation.

The precious metals market has been especially volatile this month, with gold and silver experiencing significant price swings after the historic January run that began the year. A combination of geopolitical uncertainty, economic concerns, and speculation surrounding supply chains helped drive gold and silver prices to multiple all-time highs throughout January. This volatility is expected to persist, especially as traders attempt to weigh rising US-Iran tensions, an unclear Federal Reserve status, and other uncertainties.

Gold and silver both ended the trading week up considerably. Gold added nearly $100 per troy ounce to its spot price, and silver gained $5.70/ozt amid speculation that the United States may conduct new military strikes in Iran.