Gold, silver prices likely to rise tomorrow amid escalating war in Middle East; What’s next?

The focus will be on gold and silver prices tomorrow after the US-Israeli attack on Iran killed the country’s Supreme Leader Ayatollah Ali Khamenei. Analysts expect higher volatility as elevated geopolitical tensions push investors toward safe-haven assets such as precious metals.

Khamenei’s death, which was confirmed by Iran’s state media earlier today, prompted warnings of sharp retaliation from Tehran. US President Donald Trump announced that the 86-year-old leader had died on the first day of what he described as a massive joint airstrike.

Geopolitical tensions fueled risk-off sentiment, moving investors away from equity markets and toward safe-haven assets such as gold and silver. Precious metals saw record gains earlier this year, riding high amid Trump’s tariff flip flops and other uncertainties, before seeing some corrections.

Expect volatility in precious metals

Jatin Trivedi, VP Research Analyst – Commodity & Currency at LKP Securities, said gold and silver prices will remain highly volatile with gains in the opening session tomorrow amid the Middle East conflict involving US and Israeli military action against Iran.

“A sharp increase in hostilities, along with coordinated strikes and countermeasures, is fueling uncertainty and diminishing hopes for a quick diplomatic solution. This elevated geopolitical risk could lead investors to traditional safe-havens like gold and silver, and expect the bullion market to gap-up widely.”

As global equities and risk assets come under pressure, capital shifts to precious metals, which act as a hedge against uncertainty, the analyst explained. “The previous moves have already pushed gold and silver prices higher in recent sessions, and this momentum could continue if the conflict intensifies. Energy markets are also responding, with crude oil prices rising on fears of supply disruptions through key routes such as the Strait of Hormuz, further adding to risk-off sentiment,” he added, supporting further interest.

Also Read: Will Crude Oil Price Cross $100? What experts have predicted after the attack of America, Israel on Iran

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However, the effect may not be uniform. If there are any signs of diplomatic development or signs of de-escalation, the precious metals could see gains after an initial 3-6% bounce, Trivedi said.

“We expect the ongoing bullishness in US Treasuries, oil, gold and silver to extend. For India, the impact is generally magnified: higher crude oil prices widen the current account deficit, boost domestic inflation, put pressure on the rupee and global investors reduce risk exposure as FII may lead to outflows,” said Nachiketa Funier Brahmdishti, at Global Funier Brother.

Gold rose to a one-month high on Friday, trading at $5,230.56 an ounce. US gold futures for April delivery settled at $5,247.90. This increase represents a 7.6% increase for February this year.

Silver prices also rose, with the spot price rising 4.8% to $92.60 an ounce, registering a 9.7% monthly gain. Platinum rose to $2,350.34 an ounce, while palladium fell slightly to $1,775.31.

Bears are likely to take control of Dalal Street

Indian capital markets expect a gap-down opening tomorrow amid rising uncertainties. Ashish Anand, partner, Fortune Asset Managers, said financial markets will likely experience risk-off behavior with potential selling of holdings by foreign FIIs when market prices experience sharp and rapid price swings during the day.
Will Sensex, Nifty react amid escalating war in Middle East after Khamenei’s assassination?

“Our advice to investors is simple: Avoid panic-driven decisions. Businesses need to implement volatility as a strategic tool, which should be carefully managed. People who want to invest for the long term should continue their Systematic Investment Plans (SIP) and allocate their money among reliable, strong and fundamentally sound companies. One needs to follow all these rules, including asset, stock bone and stock lines. Unpredictable Help in market timing We believe wealth is built through discipline, not reaction and the key theme will be “Patience over momentum”, said Ashish Anand, Partner, Fortune Asset Managers.

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