Gold and silver prices rose sharply on Thursday, with spot gold climbing 1.2% to $4,750 per ounce.
Analysts suggest that the renewed optimism stems from speculation that the U.S. and Iran could be nearing a deal to end the ongoing conflict.
This development has reignited interest in the commodities that saw historic rallies in 2025.
The market reaction highlights the sensitivity of precious metals to geopolitical developments.
As tensions in the Middle East have previously driven up oil prices and raised inflation concerns, a de-escalation could shift investor sentiment toward risk-on assets.
However, the current rally in gold and silver appears to be driven by the potential for a diplomatic breakthrough.