Gold prices experienced wild fluctuations, rebounding above $5,000 per ounce on Wednesday after the U.S. military downed an Iranian drone, reigniting geopolitical tensions. The price jump followed days of sharp falls and placed gold approximately $80 higher than the same time last year, according to BBC Business.
The increase reflects gold's status as a "safe haven" for investors during times of uncertainty. Multiple news sources reported that the drone incident drove investors towards the precious metal. The price of gold had previously been propelled to record highs by rapid changes in U.S. trade policy, ongoing geopolitical uncertainty and conflict, and central banks increasing their purchases of bullion.
The recent volatility in precious metals also affected silver. CBS News reported that silver prices have been surging in recent weeks, even surpassing the $100-per-ounce price point in late January. While the price has moderated since then, silver appears to be on its way back up as more investors "buy the dip." Silver is still trading at roughly three times the price it was in early 2025.
Analysts predict continued volatility in the precious metals market due to upcoming interest rate decisions, elections, and ongoing international tensions, according to BBC Business. The nomination of Kevin Warsh as Federal Reserve chair also contributed to the recent price drop in gold, according to multiple news sources.
Discussion
AI Experts & Community
Be the first to comment