Gold and silver prices rallied sharply on Thursday as investors sought safe-haven assets amid ongoing geopolitical tensions in the Middle East and a weakening U.S. dollar.
Gold Climbs Above $4,800
Gold rose more than 1.5% to $4,867.39 per troy ounce on April 17, marking a fourth consecutive weekly gain for the yellow metal. The price reached as high as $4,878, the highest level since March 2026, as traders reacted to developments surrounding the Strait of Hormuz shipping corridor.
The precious metal has now gained nearly 42% compared to the same time last year, when gold was trading around $3,400 per ounce. Since early 2025, gold prices have climbed more than 25% as persistent inflation and economic uncertainty continue to drive investor demand.
Silver Approaches Decade Highs
Silver posted even more impressive gains, rising 1.52% to $79.60 per troy ounce. The white metal is on track for a 4% weekly advance and now trades nearly 30% above its March lows.
The year-over-year performance has been remarkable. Silver has surged 143% from $32.76 per ounce one year ago, significantly outpacing gold's gains during the same period. This rally has been attributed to limited supply and growing demand from industrial and investment sectors.
Geopolitical Factors Drive Safe-Haven Demand
Market attention has focused on the Middle East, where ongoing tensions between the U.S. and Iran have affected shipping through the critical Strait of Hormuz. Reports suggest Washington and Tehran are considering extending a two-week ceasefire to allow more time for diplomatic negotiations, with discussions expected to focus on reopening the strait and Iran's nuclear enrichment program.
News that the strait will remain open to commercial shipping during a 10-day ceasefire between Israel and Lebanon, with vessels required to transit through a coordinated route, provided some relief to markets while still supporting precious metals demand.
Supply Constraints Support Silver Outlook
The Silver Institute and Metals Focus have warned of a sixth consecutive year of structural deficit in the silver market. According to their analysis, 762 million troy ounces have been drawn from stocks since 2021, raising concerns about a potential liquidity squeeze.
Industrial demand for silver remains robust, driven by applications in solar technology, electronics, and healthcare equipment. However, total industrial demand is forecast to decline 3% to 640 million ounces in 2026.
Dollar Weakness Provides Tailwind
A weaker U.S. dollar, hovering near six-week lows, has provided additional support for precious metals prices. The Federal Reserve's cautious approach to inflation has eased expectations of aggressive monetary tightening, making non-yielding assets like gold and silver more attractive to investors.
Despite these tailwinds, silver has experienced significant volatility during the recent geopolitical turmoil, dropping about 15% at times since tensions escalated, before recovering on improved diplomatic prospects.
What Investors Should Know
Financial advisors note that exchange-traded funds (ETFs) offer the easiest way for investors to gain exposure to precious metals. "It is much easier to rebalance a client's allocation of gold if it is owned as an exchange-traded fund, and the spread when attempting to buy or sell gold can be quite variable and wide," one advisor told Fortune.
Other precious metals also showed strength, with platinum trading at $2,068 per ounce and palladium at $1,553 per ounce.
Sources: Fortune, Trading Economics, Silver Institute