Wed Feb 04 00:00:00 UTC 2026: ### Gold and Silver Surge After Initial Dip, Driven by Geopolitical Tensions
The Story:
Gold and silver prices experienced a significant surge on Tuesday, marking the largest single-day gain since November 2008. This rally followed a period of volatility triggered by the announcement of a new Federal Reserve Chairman nominee, who signaled potentially higher interest rates. Initially, this news caused a sell-off in precious metals as investors anticipated a stronger dollar. However, renewed buying activity, fueled by escalating tensions between the United States and Iran, propelled prices upward.
Key Points:
- International gold and silver prices surged on Tuesday.
- Prices previously reached record highs of $5594.82 per ounce for gold and $115.50 per ounce for silver.
- The initial dip in prices was attributed to the expected appointment of a new U.S. Federal Reserve Chairman and subsequent anticipation of higher interest rates and a stronger dollar.
- Renewed buying was triggered by heightened tensions between the U.S. and Iran.
- As of Tuesday night at 11:55 PM, gold prices increased by $292 (6.3%) to $4926 per ounce, and silver prices rose by $6 (7.5%) to $83 per ounce.
- Domestic prices in India also rose, with 10 grams of gold reaching ₹1,58,500 and a kilogram of silver settling at ₹2,79,600.
Key Takeaways:
- Geopolitical instability continues to be a major driver of precious metal prices.
- Expectations surrounding U.S. monetary policy, specifically interest rate hikes, can induce volatility in commodity markets.
- Gold and silver are still viewed as safe-haven assets during times of international uncertainty.
- The Indian Rupee’s slight strengthening against the dollar did not prevent local price increases in precious metals.
- Investor sentiment can shift rapidly in response to both economic and political news.
First Piper 