Both gold and silver sold off sharply Wednesday after the White House dismissed an Iranian report of a Strait of Hormuz peace deal as fabricated. Key Points: Gold and silver reversed hard aft
Both gold and silver sold off sharply Wednesday after the White House dismissed an Iranian report of a Strait of Hormuz peace deal as fabricated.
Key Points:
- Gold and silver reversed hard after a rumored US-Iran peace framework collapsed within hours.
- Gold slid from above $4,500 toward the $4,428 area, while silver dropped to $73.97.
- Macro pressures, including elevated real yields and faded rate-cut bets, kept both metals exposed.
The reversal began after Iranian state media released a purported draft memorandum that would reopen the strait and lift the US naval blockade.
Oil fell below $89 a barrel as traders priced in easing supply risk.
Then the White House denied the report, calling the document a complete fabrication and warning against trusting Iranian state outlets. The whipsaw forced a fast risk reassessment across commodities.
Charts shared by analyst Max Cryptoshow gold sliding from above $4,500 toward the $4,428 zone in a matter of hours. Silver fell from roughly $75.50 to $73.97, a drop of about 2.6%.
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Both metals are unusually sensitive to inflation expectations and geopolitical risk, which made the narrative whiplash especially violent.
Buyers stepped back almost immediately.
The selling came through strong red candles, a pattern that points to traders exiting in a hurry rather than a measured unwind.
The underlying macro backdrop has not shifted much. US consumer sentiment slipped from 93.8 to 93.1 between April and May, and bond markets are not pricing in rate cuts, leaving real yields high.
Each bounce attempt between roughly $4,430 and $4,460 in gold got rejected quickly, while silver sellers retook control every time price tried to stabilize.
For now, both metals are responding to short-term uncertainty rather than a break in their longer trend structures built during the earlier rally.
Precious metals have been on a wild ride throughout the spring. The Strait of Hormuz crisis, which closed the waterway in late February, sent silver down more than 20% from its peak at one stage, even as gold held above structural support near $4,500. Earlier ceasefire headlines in April triggered a brief 6% silver surge before profit-taking erased the gains, underscoring how quickly the metals now swing on each Iran development.
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