Key Takeaways:
- Spot gold fell 2% to $4,242.32/oz, COMEX gold dropped 2% to $4,264.10/oz
- Spot silver lost 2.5% to $68.25/oz, tracking gold's decline
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Gold slides 2% to $4,242 as precious metals sell-off deepens
Gold fell 2% to $4,242.32/oz on Tuesday, and silver dropped 2.5% to $68.25/oz, extending a broad precious metals sell-off as risk-on sentiment swept global markets.
The decline reversed Monday's rally when gold and mining stocks surged after the US and Iran agreed to end their war and reopen the Strait of Hormuz, according to Barchart data. President Trump said the Strait of Hormuz will reopen after the signing of a peace deal on Friday in Switzerland, which will trigger 60 days of talks on Iran's nuclear program.
COMEX gold futures fell 2% to $4,264.10/oz, tracking spot prices lower. Spot silver dropped 2.5% to $68.25/oz. On Monday, mining stocks had rallied sharply — Coeur Mining and Hecla Mining each closed up more than 8%, Newmont Corp gained more than 5%, and Barrick Gold added more than 4%. Freeport-McMoRan rose more than 2% and Southern Copper gained more than 1%.
The sell-off comes as a sharp drop in crude oil fueled a broad rotation into equities. WTI crude fell more than 4% to a three-month low on the US-Iran peace deal, lowering inflation expectations and pushing the 10-year T-note yield to a one-month low of 4.42%. The 10-year German bund yield fell to a two-week low of 2.954%, and the 10-year UK gilt yield dropped to a 1.75-month low of 4.812%, according to Barchart data. The S&P 500 rose 1.65% to a one-week high, the Dow Jones Industrial Average hit a new record, and the Nasdaq 100 climbed 3.06%, led by a 5% gain in the iShares Semiconductor ETF. Rate markets are pricing just a 4% chance of a quarter-point hike at the Federal Reserve's June 16-17 meeting, according to CME FedWatch data.
Gold at $4,242/oz sits about 3.5% below its recent peak. The gold-to-silver ratio stands at roughly 62:1, near the upper end of the 55-65 range that has held for most of 2026, indicating a macro-driven rotation rather than a metal-specific catalyst. A sustained move out of haven assets could test the $4,200 support level, a key psychological threshold. The next catalyst for precious metals is the Friday peace deal signing in Switzerland and the subsequent 60-day nuclear negotiations.
This article is for informational purposes only and does not constitute investment advice.
