Gold has surged back above $5,400 an ounce in early trading following US missile strikes on Iran, prompting fresh speculation over whether the precious metal could break through $6,000 in the coming weeks.
The renewed rally comes after a volatile start to the year for bullion. Gold hit a record high of more than $5,550 in late January, before tumbling sharply to around $4,700 by early February. Silver followed a similar path, sliding from above $120 to roughly $82. Both metals are now climbing again, with silver edging back toward $100.
The latest spike follows coordinated US and Israeli strikes on Iran over the weekend, which reportedly killed Supreme Leader Ayatollah Ali Khamenei and triggered retaliatory action by Tehran against US allies in the Gulf. Tensions around the Strait of Hormuz, a critical artery for global oil supplies, have intensified, pushing oil and safe-haven assets higher.
Market analysts describe the situation as a “classic risk-off scenario”, with investors flocking to traditional stores of value amid fears of broader regional escalation, oil supply disruption and renewed inflationary pressures.
Cameron Parry, founder and CEO of TallyMoney, said the moves were entirely consistent with previous geopolitical crises.
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