Gold and silver could resume their rally if the war in Iran ends, according to market analysts cited by CNBC on Thursday.
The metals saw record-breaking rallies last year, with gold climbing 66% and silver 135% over the course of 2025.
However, their performance has been lackluster in 2026 as assets are seeing increased volatility as a result of the war in Iran. They have not been trading as safe havens during the conflict, dipping when oil prices rise.
Ross Norman, CEO of precious metals website Metals Daily, told the outlet that the possibility that interest rates rise again, a stronger U.S. dollar and traders exiting positions contributed to declines this year.
"If you look at March, when equities were selling, for an investor with some allocation in gold during that period, you were sitting on pretty strong returns in gold, and you could perhaps take some off the table to cover some of your equity losses," Francis Tan, chief Asia strategist at Indosuez Wealth Management, told the outlet.
However, both assets are climbing on Thursday as most markets rally as a result of optimism over the possibility that the war in Iran could be close to ending. Gold rose by 1.35% at 10:41 a.m. ET and is trading above $4,750, while silver jumped 5.86% at the same time and clocked in at $81.83.
The S&P 500 is also in the green, rising 0.15% as it continues to reach record-highs. The tech-heavy Nasdaq Composite rose more than 0.6%.
At the same time, oil continued to drop. Brent crude, the international benchmark, dropped a little over 3% at 9:48 a.m. ET, dipping below $100 a barrel. The West Texas Intermediate, the U.S. benchmark, also fell, standing below $93 per barrel at the same time.
The moves follow reports that Pakistani mediators are optimistic about chances of getting a deal.
CNN detailed that the White House received positive feedback on the matter. Citing a source familiar with the matter, the outlet said President Donald Trump appears to be simplifying issues related to the negotiations so moderates in Tehran will return to the negotiating table.
Iran said on Wednesday it was reviewing the proposal and is expected to provide its response to Pakistani mediators on Thursday.
While neither Washington nor Tehran have provided any details about the proposal, Axios reported that the countries are getting close to a one-page memorandum of understanding with 14 points to end the war and usher detailed nuclear negotiations.
