Topline
The prices of gold and silver plunged Tuesday afternoon on fresh Iran war tensions and expectations of future interest rate hikes, carrying the metals to their lowest levels in months as silver has erased almost half of its value since hitting a historic peak in January.
The prices of gold and silver dipped again Tuesday. (AP Photo/Sakchai Lalit)
Copyright 2026 The Associated Press. All rights reserved.
Key Facts
The price of silver is $65.78 an ounce as of 3:15 p.m. EST on Tuesday, down more than 4%, though the metal was down nearly 6% to a low of $64.46 earlier in the afternoon.
The price of gold is about $4,292 an ounce as of 3:15 p.m. EST, down nearly 2% but up from an intraday low of $4,259.90.
The metals have declined steadily throughout what has been a rough June so far, with silver losing more than 13% of its value since it opened at a price of just over $75 on June 1, and gold losing about 6% of its value since opening at about $4,575 at the beginning of the month.
The last time gold and silver reached prices this low was in late March, a brief dip analysts at the time blamed on mixed messaging from Iranian and American leaders over peace talks; before that, gold and silver hadn’t been this low since December.
The metals, which have generally declined in price throughout the Iran war, are now far from the record-high peaks they hit in late January, with silver shedding almost half of its value since late January, when it peaked around $120.
why are metals declining tuesday?
Several analysts attributed Tuesday’s decline in prices to Iran war tensions and expectations the Federal Reserve may hike interest rates, which typically puts downward pressure on metals. Ole S. Hansen, head of commodity strategy at Saxo Bank, said in a post on X silver is experiencing a “renewed bout of weakness” as investors wait for more clarity on “inflation, energy prices, and the Federal Reserve’s policy path.” Analysts at Germany’s Commerzbank said as long as “expectations of interest rate hikes prevail,” which rose after a strong jobs report last week, gold prices are likely to stay down. Ryan McKay, senior commodity strategist at TD Securities, also cited inflation fears, strong jobs data and a heightened probability of interest rates increasing as reasons for Tuesday’s decline, Bloomberg reported. The decline in metals prices also follow strikes exchanged between Israel and Iran, as well as President Donald Trump declaring the United States “must” respond to Iran allegedly shooting down a U.S. Apache helicopter near the Strait of Hormuz.
what to watch for
Analysts have indicated inflation data for May, scheduled to release on Wednesday, could also impact metals prices. “Should the U.S. inflation data for May also surprise on the upside on Wednesday, the gold price is likely to fall further,” Commerzbank analysts said Tuesday.
tangent
Metals prices also dipped late last week, with silver falling more than 6% and gold declining more than 2% on Friday after the Bureau of Labor Statistics reported jobs data for May. The report was stronger than expected, saying the U.S. added 172,000 nonfarm jobs in May while the unemployment rate remained at 4.3%. Bart Melek, global head of commodity strategy at TD Securities, said the jobs report makes it “quite unlikely that the Fed is in any mood whatsoever to lower rates,” noting the “implication for gold here is that the cost of carry is getting quite high.”
key background
Gold and silver are still up significantly year-over-year, but they have come down from the historic levels reached in late January, when silver peaked above $120 and gold hit a high around $5,600. Their prices were lifted by factors including interest rate cuts, Trump’s tariffs, international tensions and increasing demand for silver by the technology industry. Prices crashed in late January after Trump named Kevin Warsh, considered less likely than other presumed candidates to slash interest rates, as his pick to lead the Federal Reserve. Metals prices have generally declined throughout the Iran war as oil prices have risen.
further reading
Gold And Silver Hit Lowest Prices In Months After Strong Jobs Report (Forbes)
