The Iran-US clash has now started to take a difficult route, the one that is on a path to disrupt the global energy flow. Due to Iran blocking the Strait of Hormuz, the global oil flow route has been severely impacted. As escalations begin to take a lethal turn, the crisis has not started to impact the silver and gold prices, with both the assets down significantly from their earlier all-time highs. Is this it, or will the gold markets experience a bigger crash ahead?

Also Read: Oil Prices Top $110 Amid Iran War, Trump Shrugs Off Spike

Gold Prices Fall 3% Amid US-Iran Conflict

Gold prices have taken a toll amid the rising Iran-US escalations. The gold price is now down by 3% as tensions between both the countries continue to evolve at a rapid rate. Both the countries are involved in rapid war strikes, disrupting the oil, gold, and silver domains at the same time.

The popular reasoning behind the fall of the gold price is usually due to the oil price spike, which in turn is fueling inflation fears. In addition to this, such circumstances may fuel Fed stance to keep the interest rates higher, which may end up favoring the US dollar. This is what is causing the silver and gold markets to act violently, falling as investor sentiment shifts during such grave times.

On the other hand, the global energy crisis seems to be taking a violent turn as major energy sectors are now experiencing a serious hike in their prices. Starting with crude oil, the prices of the commodity are now up by 30%,the Fed’s with Brent crude and heating oil up by 20% to 22% as of late. Moreover, gasoline prices are up by 14%, making it harder for the economy to relax in the meantime.

What’s Ahead for Gold and Silver?

According to Rashad Hajiyev, a leading finance expert, gold prices may surge ahead in the future as well, avoiding a bigger crash narrative. Hajiyev expects gold to hit $7k to $8k in the future, with silver prices breaching the $200 price mark once again.

“The gold-to-silver ratio (GTS) is about to resume its downtrend. My next two targets are 40 and 25 over the coming months. My gold targets are $6k and $7k. GTS targets are 40 and 25. Let’s calculate silver prices. First target $6k/40=$150. Second target: $7k/25=$280. So the next two targets are $150 and $280 over the coming months. If gold overshoots, then we are looking for even higher silver prices. I would not be surprised if silver reaches $350. Be safe and ready! Posts are not investment advice!”

Also Read: If the US-Iran War Drags On, Stocks, Crypto, and the Dollar Could Sink