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Gold, silver prices jump as US-Iran tensions escalate
26 May 2026

Gold and silver prices have witnessed a surge on Tuesday, owing to the rising tensions between the United States and Iran. The geopolitical uncertainty in West Asia has kept safe-haven demand firm.

COMEX Gold was last trading at $4,541.5 per ounce (up by 0.4%) after hitting an intraday high of $4,583.3 an ounce.

COMEX Silver climbed 1.41% to $77.27 per ounce during international trade today.

US airstrikes in Iran raise geopolitical concerns
Market influence

The latest US airstrikes in southern Iran and ongoing diplomatic talks between Tehran and Washington have kept markets on edge.

The situation has also affected oil prices, with Brent crude futures rising nearly 2% in Asian trade.

This is due to fears of potential supply disruptions amid the ongoing tensions around the Strait of Hormuz.

Impact of rising oil prices on global inflation
Inflation fears

The rise in oil prices has stoked fears that inflation could remain high across the globe.

This could force central banks, including the US Federal Reserve, to keep interest rates higher for a longer period.

Gold is traditionally seen as a hedge against inflation and geopolitical uncertainty. However, higher interest rates usually limit gains in non-yielding assets such as bullion.

Fed rate hike expectations and bullion market sentiment
Rate expectations

The markets are currently pricing in the possibility of another US Federal Reserve rate hike before the end of the year, according to CME FedWatch data.

Jateen Trivedi, VP Research Analyst at LKP Securities, said that global bullion sentiment remains supported by geopolitical developments and currency movements.

In India, he sees immediate support for gold near ₹1.58 lakh per 10gm on MCX with resistance around ₹1.6 lakh per 10gm.