Gold and Silver Slide as Rate Hike Fears Overpower Safe-Haven Flows

Gold and silver prices fell sharply after Tuesday’s close as expectations of further rate hikes and a bearish technical break outweighed any remaining safe-haven demand linked to the Strait of Hormuz. Spot gold dropped 1.64% to $4,259.50 an ounce, while silver slid 4.17% to $65.335.

The selloff built on Friday’s post-payrolls losses, with gold touching $4,236.40 and silver $64.25. Focus now shifts to Wednesday’s CPI and Thursday’s PPI reports. News of U.S. accusations against Iran over a helicopter incident failed to lift prices, as oil eased and equities finished mixed.

The S&P 500 fell 0.3% to 7,386.65 and the Nasdaq dropped 1% to 25,678.82. Technically, gold faces resistance at $4,350–$4,370 with support at $4,250, while silver looks to $71–$72 on the upside and $65–$66 below.