Is Liquidity Enough to Support Gold and Silver as War Risks Rise?
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Key Points:
- Gold and silver remain volatile as gradual liquidity support offsets pressure from rising inflation and geopolitical risks.
- The US–Iran conflict has driven energy prices higher, creating a push and pull effect between safe-haven demand and stronger interest rate expectations.
- Silver’s recent weakness signals declining momentum, and its performance will be key in confirming the next direction for precious metals.
Gold (XAU) and silver (XAG) have shown strong volatility after the recent shift in macro conditions. The prices are reacting to changes in liquidity, rising energy costs and escalating geopolitical tensions in the Middle East. In my view, this combination of gradual liquidity support and war driven inflation pressure sets the stage for mixed and uncertain trend in the near term. This article outlines how these macro drivers, along with silver’s behaviour at key support levels, will shape the next move in precious metals.