Gold and Silver Slide as Rate Expectations Outweigh Geopolitical Risk

The selloff extends the momentum from last week’s post-payrolls decline, leaving both precious metals vulnerable ahead of Wednesday’s May consumer price index report. While the downing of a U.S. Apache helicopter near the Strait of Hormuz initially signaled a potential supply shock, traders treated the escalation as a negotiation-heavy event rather than a catalyst for a sustained flight to quality. The market remains anchored to the Federal Reserve’s policy path, rendering traditional geopolitical hedges ineffective.

Technical pressure mounts as both assets slip below critical chart thresholds. For gold, the immediate bearish objective targets the $4,180 to $4,200 support zone. Silver faces similar headwinds, with bears eyeing a move toward $62.00 should the price fail to stabilize above current support levels. With producer price data arriving Thursday, the focus remains squarely on the interest rate environment rather than external volatility.