Gold-Silver Ratio on Thin Ice Amid Iran Conflict and Fed Uncertainty

Gold and silver prices have been under pressure in recent months, despite their strong performance in 2025. Gold is currently trading at $4,400 an ounce, while silver is at $66, resulting in a gold-silver ratio of 66. This ratio has remained within its historical range of 60 to 70 over the past six months.

However, the ratio has been affected by recent events, including the Iran war and rising oil prices. The conflict has pushed up oil prices, leading to higher US inflation rates and reducing the likelihood of a rate cut from the Federal Reserve. This has put pressure on both gold and silver prices.

The Fed's decision on interest rates is still uncertain, with investors waiting for clarity on inflation and rate direction. The ratio could move towards 100 if gold rises to $6,600 while silver stays flat or if silver falls to $44 while gold remains steady. Historically, when the ratio moves towards 100, gold prices tend to rise first, followed by a catch-up in silver prices.