Gold vs Silver: Iran has offered to reopen the Strait of Hormuz if the US reduces military pressure and lifts its blockade on Iranian ports, according to reports. As per Reuters report, Tehran could reopen the strategically important waterway within seven days, provided Washington eases military pressure and removes the blockade on Iranian ports.
Amid the ongoing US-Iran conflict, investors may be weighing which metal could offer a better investment opportunity, particularly as crude oil prices have started to ease after witnessing a sharp rally since the war began.
Since reaching their respective peaks following the outbreak of the conflict in late February, both spot gold and silver prices have undergone a correction. Spot gold has declined by around 10%–20% from its peak of nearly $5,500 per troy ounce. Meanwhile, Spot silver has also corrected by around 12%–15% from its elevated levels.
Meanwhile, back home, precious metals on Multi Commodity Exchange (MCX) have also experienced similar pullbacks from their all-time peak levels. MCX gold prices have declined around 12%–15% from their war-driven peak of above ₹1,75,000 per 10 grams and MCX silver prices are down approximately 10%–14% from their peak of nearly ₹2,75,000 per kg.
What’s behind the fall in precious metals?
According to market experts, rising oil prices intensified inflation concerns, leading central banks, including the US Federal Reserve, to adopt a hawkish policy stance and keep benchmark interest rates elevated.
Meanwhile, a firm US Dollar Index has made dollar-denominated bullion more expensive for overseas investors, thereby weighing on global demand.
Immediately following the closure of the Strait of Hormuz and initial escalation in March 2026, oil prices spiked by over 60%, reaching peak levels between $118 and $120 per barrel. Prior to the outbreak of major hostitilies in late February 2026, Brent crude traded in the $70–$72 per barrel range.
In September so far, Brent crude is trading in the $98 to $101 per barrel range, while US West Texas Intermediate (WTI) sits around $90 to $94 per barrel.
Gold and silver price outlook
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, Gold is likely to remain volatile amid these geopolitical triggers and can be seen between the range of ₹1,51,000– ₹1,54,500.
“Gold witnessed volatile moves between ₹1,51,850– ₹1,53,350, as falling crude prices provided support while the Dollar Index moving above 100 kept bullion under pressure. Going ahead, markets will closely watch Trump’s UN speech, Xi Jinping’s US visit and developments around the Strait of Hormuz, with the US-Iran situation remaining unresolved,” said Trivedi.
On the silver prices outlook, N S Ramaswamy, Head of Commodity & CRM at Ventura, said that the white metal is likely to stabilize between $63 and $75 per ounce with high amplitude swings. It remains in a balance due to the interest rates and dollar volatility.
“On macroeconomic eases downside support holds near $64.50 per ounce. Medium Term price targets could be $75 – $80 an ounce (Rs.325000 per Kg. in MCX) on any indication of softer inflation, Fed rate cuts, stabilizing solar demand and weaker US Dollar. On a consolidation basis with high interest rates prevailing, Silver could witness a range of $60 – $63 an ounce (Rs.225000 per Kg in MCX). Silver prices are currently experiencing intense volatility, trading near $64–$66 per ounce (Rs.235000 – Rs.238000 per Kg on MCX),” Ramaswamy said.
Gold vs Silver: Which metal to invest in?
According to Anuj Gupta, SEBI Registered Research Analyst, Gold is expected to outperform silver, as it has a stronger direct correlation with geopolitical tensions and serves as a traditional safe-haven asset.
“Gold also tends to have an inverse relationship with the US dollar, bond yields and interest rates. Silver, on the other hand, has a significant industrial component, making its price more closely linked to industrial demand and broader economic activity,” Gupta said.
Meanwhile, Vikram Subburaj, CEO, Giottus.com, believes that the recent price action in both precious metals shows that volatility remains high.
Subburaj recommended investors should avoid reacting to every short-term move and said that those looking at gold and silver for longer-term portfolio allocation can consider staggered buying. This reduces the risk of committing capital at a single price.
“For leveraged traders, the current environment calls for tighter risk management. Position sizes should remain controlled. Stop-losses should be defined before entering a trade. The near-term direction will depend heavily on the dollar, US yields, crude prices and geopolitical developments,” Subburaj said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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