Gold and silver plunge despite war, inflation, and central bank buying as markets price in higher Fed rates
first published 2026-06-07T14:25:24Z
Gold and silver have dropped sharply from January 2026 highs, wiping out about $1 trillion in combined value even as war, rising inflation, and supply tightness would normally support them. The decline has been driven by stronger expectations for rate hikes after a strong May jobs report and Kevin Warsh’s appointment as Fed Chair, while Western investors continue to pull out and central banks keep buying. Traders are watching the June FOMC meeting for the next policy signal.
AI Analysis
The summary describes a large selloff in gold and silver driven by stronger rate-hike expectations, continued investor outflows, and focus on the upcoming FOMC meeting. This is a concrete macro move that can affect short-term trading sentiment in related assets.
Expected Investor Sentiment: Bearish
Potential Market Impact: Significant
