Gold, silver hit two-week highs as U.S.-Iran strikes fuel safe-haven demand

Spot gold climbed above $4,100 an ounce on Wednesday, reaching a two-week high, while silver touched $60 as precious metals extended a multi-session advance driven by escalating U.S.-Iran hostilities that have overwhelmed the usual drag from elevated Treasury yields and a firm dollar.

Safe-Haven Flows Surge Amid 11th Night of Strikes

Gold traded near $4,130 in morning trading — its highest since July 10 — after rising more than 1% from Tuesday's close. Silver climbed to $60 an ounce on the same session, also at a two-week peak. The rally coincides with U.S. Central Command confirming on Monday evening that American forces completed an 11th consecutive night of strikes against Iranian military operations centers, maritime capabilities, and drone storage facilities.GoldSilver+3

The intensification follows President Trump's declaration earlier this month that the interim ceasefire between Washington and Tehran was "over" after Iranian attacks on commercial vessels in the Strait of Hormuz. Secretary of State Marco Rubio said the U.S. remains open to a deal but questioned whether Tehran would accept acceptable terms. Brent crude rose to around $90 on Wednesday morning, up roughly 20% across July, as supply disruption fears mount.TRADING ECONOMICS+3

Metals Defy Rising Yields and Dollar Strength

The advance is notable given conditions that would typically suppress precious metals. The 10-year Treasury yield rose to 4.66% on Wednesday, while it had sat at 4.60% just days earlier. Markets are now pricing about a 70% probability that the Federal Reserve will deliver its first rate hike as early as September, with two 25-basis-point increases expected by March 2027.Stlouisfed+2

Yet safe-haven demand and oil-driven inflation concerns are overriding those headwinds. Analysts note that persistent Strait of Hormuz transit risks — the U.S. reimposed its naval blockade on vessels traveling to and from Iranian ports — have kept crude elevated and reinforced the inflation premium embedded in gold.CNBC+1

Broader Context

The current conflict traces back to the joint U.S.-Israeli Operation Epic Fury launched on February 28, which killed Iran's Supreme Leader and triggered weeks of retaliatory exchanges across the region. An April ceasefire held for roughly two months before unraveling in early July when Iran attacked commercial shipping. Gold had previously spiked above $5,300 during the initial February-March fighting before retreating as the truce took hold. With diplomacy stalled in Pakistan and strikes continuing nightly, traders are repositioning for a protracted conflict that keeps energy costs elevated and safe-haven demand intact.Encyclopedia Britannica+6