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Spot silver rose 2.2% to $37.26 per ounce, the highest since early 2012.
Gold remained relatively flat, widening the gold-to-silver ratio gap.
Market anxiety over potential U.S. military moves is fueling demand for silver..
Silver surged past the $37 mark on Tuesday, reaching levels not seen in over a decade as investors piled into safe-haven assets amid escalating geopolitical strains in the Middle East. The jump comes on the heels of heightened speculation that the United States may deepen its involvement in the Israel-Iran conflict.
Silver futures mirrored spot prices, peaking at $37.33 per ounce in New York. The metal’s rise is a sharp contrast to gold, which only managed a modest 0.2% uptick to settle just below $3,390 per ounce. This divergence marks the fifth straight session where the two metals have moved in opposite directions—a rare trend given their historic trading patterns.
BullionVault data highlights that gold and silver have traditionally moved in tandem, correlating on nearly 79% of trading days over the past 50 years. However, today’s markets are responding differently to the latest geopolitical flashpoint.
“Gold’s reaction may seem muted given the circumstances,” said Carsten Menke of Julius Baer Group. “But history shows that such conflicts often don’t lead to sustained gains in gold prices.”
UBS analysts maintain a bullish stance on gold, suggesting its current pause is part of a broader rally. Strategists at MKS Pamp are also optimistic, forecasting a potential retest of April’s all-time high at $3,500 per ounce, citing the nuclear-risk angle of the Israel-Iran standoff as a renewed catalyst.
For now, silver is stealing the spotlight, outshining its precious metal counterpart as investors adjust portfolios in response to rising uncertainty in global affairs.
