Gold and silver prices have reached record levels in 2025. CNBC experts believe that their growth may continue in the event of a peace agreement between the US and Iran.
The price of gold fluctuated depending on the price of oil and the U.S. dollar. The dollar was strengthening due to energy shortages and the influx of speculative money. Gold was also rising due to the influx of funds into safe haven assets.
A peace agreement between the U.S. and Iran could weaken these factors, causing precious metals prices to fall. However, the forecasts are the opposite.
Market dynamics
At the beginning of April 2026, the spot price of gold rose by 1.2%, reaching $4,750 per ounce. This happened amid reports of a possible settlement of the conflict between the US and Iran. Silver also showed growth, although not so significant.
Over 2025, gold rose in price by 66% and silver by 135%. However, the market became more volatile in early 2026. Silver futures in late January experienced the largest one-day drop since the 1980s. Gold has lost more than 10% of its value from its January high.
With the onset of the U.S.-Iran conflict in February 2026, gold’s role as a safe haven has become less clear. Some of the factors that previously contributed to its growth have come into question. These include potential interest rate hikes, a stronger U.S. dollar and traders closing positions.
According to Ross Norman, CEO of Metals Daily, gold appeared to be “significantly overbought.” This prompted dealers to lock in profits and the market to consolidate. Traders were selling their most profitable assets.
Arguments for growth
According to Gijsels, central banks and governments will continue to diversify their portfolios away from U.S. government bonds in favor of gold. In a high-inflation environment, real assets are needed, and precious metals play an important role in that process.
Paul Williams, managing director at Solomon Global, said it is difficult to make predictions in times of conflict. However, he noted that the fundamentals that supported silver prices in 2025 remain in place.
The supply of physical silver is limited, while demand from green technology and artificial intelligence remains strong. This creates a tight supply-demand balance. Williams expects silver prices to be supported over the long term.
If the conflict between the U.S. and Iran is resolved, silver will benefit from improved economic sentiment, increased industrial demand and increased investor appetite for risk. If negotiations fail, gold could become a major defensive asset. However, a limited physical market for silver could lead to a rapid rise in its value.
