Will gold and silver prices rise again after the US-Israel-Iran war? Here's what SBI Research says

While gold is expected to get costlier in times of geopolitical conflicts, investors have been surprised to see a decline in yellow metal prices amid the ongoing US-Israel vs Iran war.

As the gold and silver prices continue to drop, investors are concerned about whether this trend will hold for long or reverse going forward. However, a recent report by SBI Research hints at brighter days ahead for the precious metals after the end of the war.

The report expects a "smart recovery" in gold and silver prices soon once the dust settles. Read on for more insights from the report.

Gold and silver prices since March 16

*Rates as exclusive of GST as of March 23, 2026; Gold is ₹/10 Gm and Silver in ₹/Kg

Gold and silver prices have exhibited waning strength since the start of the conflict due to heavy sell-off by investors.

Generally, a stronger dollar (USD) diminishes the appeal of commodities, including gold and silver. During the ongoing conflict, USD has crawled to a record high, resulting in a fall in prices of gold and silver.

"Most often, metals including precious metals, are juxtaposed to the Greenback, a weaker Dollar fueling a rally (over and above demand driven dynamics) while a stronger USD diminishes the appeal of the commodities that are largely priced in the dominant currency," the report said.

"Given the structural imbalances globally, paving the way of the Dollar crawling to an uncontested peak, metals pack have taken a beating with prices of Gold and Silver hamstrung most by the sudden assault emanating from the conflict and the clouds on industrial demand," it added.

According to the report, countries will need to infuse liquidity to revive the demand impetus after the end of the conflict. Moreover, central banks could also start accumulating precious metals again, which could lead to another bull run. Both these activities could lead to another bull run in gold and silver.

"Interestingly, nations may need to infuse liquidity to revive the demand impetus, crawling out of the precarious situation once the conflict abates, a perfect bazooka for the role reversal with precious metals offer a citadel from imperfect multipolarity of the world," the report said.

"While recent actions of Central Banks are not available in public domain, we believe most could return to the table, accumulating more of precious metals in their coffers, anchoring another leg of a Bull run that goes concurrently with apprehensions cast on sustainability of elevated debt plans of both sovereigns, as also hyper scalers in next 2-3 years," it added.