Raging Conflict in Middle East: Gold and silver headed higher? Analysts weigh US-Israel-Iran conflict

After staging wild swings so far in 2026 following a stellar year for precious metal investors, are fresh escalations and mounting geopolitical concerns set to send gold and silver rates globally once again? Well, Indian investors have yet to see early trends on Monday when the domestic commodity market opens for business. With Israel and the US launching a joint attack against Iran and Tehran's retaliatory action in several parts in the Middle East, it may be a long weekend before Monday's opening bell.

The confrontation follows weeks of tension over Iran’s nuclear programme and revives memories of the recent 12-day air war -- pushing hopes of diplomacy even further out of reach. Typically, any rise in rising geopolitical tensions or rising financial uncertainty tends to boost the appeal of precious metals as a safety bet against riskier assets like stocks.

Before the escalation that began on Saturday, many experts had kept the Iran crisis on their wait-and-watch lists.

Add Zee Business as a Preferred Source

Middle East rattled by US-Israel-Iran conflict

Sirens wailed across Jerusalem on Saturday morning as Israel launched what it described as a “preventive” strike on Iran, after Israeli authorities declared an “extremely serious alert” and shut their airspace, while the US confirmed its involvement in the surprise operation targeting sites in Tehran. US President Donald Trump confirmed “major combat operations”, saying Washington’s objective is to eliminate imminent threats and to broadly ensure Tehran does not acquire nuclear weapons.

Israeli Prime Minister Benjamin Netanyahu echoed that message, urging Iranians to seek a “free and peaceful” future. The Indian Ambassy in Tel Aviv issued an advisory for Indian nationals in Israel, urging them to stay alert with the local updates. Hundreds of flights already bore the brunt of the situation, characterised by disrupted airspaces across busy routes connecting the Middle East with other parts of the world.

Israel asked its citizens to avoid gatherings and stay near shelters amid fears of retaliation early on Saturday.

EDITOR'S TAKE | How market guru Anil Singhvi views the commodity market

According to Zee Business Managing Editor Anil Singhvi:

• Gold and silver are likely to see sharp spikes due to the Middle East war
• One should avoid fresh buying at the current juncture
• A near-term top in gold and silver is likely to form over the next few days
• Booking profits would be a prudent strategy
• Start booking profits as soon as there are signs of the war slowing down or ending
• If crude prices stop rising, take it as a signal that the war may be nearing its end

Israel-Iran war impact on precious metals? What analysts say

Most analysts remained bullish on both precious metals, with some quickly revising their targets upwards to factor in the raging broader conflict in the Middle East.

Manoj Kumar Jain of Prithvi Finmart maintained his bullish stance on both metals, placing his targets at $5,500-5,650 an ounce for gold and $104-110 an ounce for silver.

Echoing similar views, Ajay Kedia of Kedia Commodities said he expects the yellow metal to test the $5,500 an ounce mark in the coming days.

He also expects a spike in crude oil rates.

Gold and silver in spotlight amid Middle East tensions | What investors should know

• Rising geopolitical risks have been known to underpin demand for precious metals as investors flock to the inflation-beating appeal of these assets; gold and silver typically see early price spikes when geopolitical tensions rise
• After the joint strikes by Israel and the US on Iran, markets are buzzing with speculation of a fresh rally in precious metals, with some analysts raising their targets
• A weaker US dollar adds to the momentum -- when the dollar softens, gold and silver become cheaper for holders of other currencies, boosting global demand
• Central bank buying remains a key structural support -- monetary authorities worldwide continue to accumulate gold to hedge against inflation and economic instability
• Silver’s dual appeal strengthens its case -- it is not just a safe-haven asset but also a critical input in industrial sectors like technology and green energy
• Beyond immediate conflict-driven sentiment, macroeconomic factors like currency trends and institutional buying are underpinning the precious metals narrative